Shares dipped for British American Tobacco this morning after the US Supreme Court blocked an emergency request to put the ban of flavoured tobacco on hold.
The court cleared the way for the state of California to push ahead with a voter-approved ban, rejecting a plea from British American Tobacco (BAT)’s Reynolds unit.
The arm, which is owned by the Rothmans maker BAT, warned in court papers that a block would cause “substantial financial losses”.
Restrictions would include vaping products, which have grown in popularity amongst youngsters.
An estimated 2.55m teens reported using e-cigarettes according to US federal health officials.
The news that the block may be moving ahead dragged down the firm’s share price on the London market by nearly one per cent, and marks a major blow for the firm’s “new category” products.
The 120-year old company has said it wants new categories to make up a fifth of its revenue and profitability by 2025.
BAT declined to comment on reports.