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The tobacco giant Altria Group said Thursday that it had devalued its investment in the vaping company Juul Labs by $4.5 billion, a move that reflects deepening turmoil in the e-cigarette industry. Altria, one of the world’s largest tobacco companies, invested $12.8 billion in Juul in December 2018, acquiring a 35 percent stake in the Silicon Valley start-up. (Robertson, 10/31)

Juul appointed a longtime Altria executive as its CEO last month in a bid to rebuild its image. The company has also cut jobs, suspended advertising in the United States and revamped its management. "While we had a range of scenarios when we made the investment, we did not anticipate this dramatic a change in the e-vapor category," Altria Chief Executive Officer Howard Willard said on a conference call with analysts. (Mishra, 10/31)

Altria for years had a predictable cigarette business and steady profit growth. Acknowledging its shifting fortunes, the company on Thursday lowered its profit forecast for the next three years for growth in a range of 5% to 8%, instead of 7% to 9%. “The industry is becoming increasingly dynamic and complex,” Altria Chief Executive Howard Willard said on a conference call. “Of course, we’re not pleased to have to take an impairment charge on the Juul investment. We did not anticipate this dramatic a change in the e-vapor category.” (Maloney, 10/31)

U.S. antitrust enforcers are probing Altria Group Inc for potentially exerting influence over electronic-cigarette maker Juul Labs Inc before winning approval for a big share buy, Altria said in a government filing on Thursday. Marlboro maker Altria purchased a 35% stake in Juul in December 2018 for $12.8 billion, but the shares are non-voting and the companies have not yet received antitrust approval for the transaction. (10/31)

Juul CEO Kevin Burns stepped down last month and was replaced by Altria executive K.C. Crosthwaite. Since then, Juul said that it will end the sale of its flavored products in the US. And the company announced another management shakeup earlier this week. The problems at Juul have taken a toll on Altria. The stock is down more than 5% this year and the company abandoned talks about a possible reunification with Philip Morris (PM), which sells Marlboro and other cigarettes internationally, last month. Altria had spun off Philip Morris in 2008. (La Monica, 10/31)

Juul on Sept. 25 announced it was replacing its CEO Kevin Burns with longtime Altria executive K.C. Crosthwaite. Altria made a “special recognition” payment of $2.5 million upon his departure, according to a separate filing with the SEC that detailed Crosthwaite’s severance package. Within days, Crosthwaite hired Altria colleague Joe Murillo as Juul’s chief regulatory officer. The companies have said the decision was Juul’s. Crosthwaite served as an observer on Juul’s board of directors after Altria’s investment in Juul. (LaVito, 10/31)

Juul spokesman Josh Raffel declined to comment. Steve Callahan, the director of communications for Altria, said he had nothing to add beyond the filing “other than Juul is an independent company which makes its own decisions and the decision to hire K.C. Crosthwaite was Juul’s decision.” That echoes Callahan’s response last month. (Moore, McLaughlin and Huet, 10/31)

The number of U.S. vaping illnesses has jumped again, reaching more than 1,800 cases. The Centers for Disease Control and Prevention said 1,888 confirmed and probable cases have been reported in 49 states. An Illinois report brings the toll to 38 deaths in 24 states. (Johnson, 10/31)

Investigators still don’t know the specific cause of the illness, which include symptoms such as coughing, shortness of breath, gastrointestinal symptoms, fever and abdominal pain. Public-health authorities attribute most of the cases to products containing THC, the psychoactive ingredient in cannabis, and in particular to products obtained from unregulated or illicit sources such as friends, family, dealers or online. (Abbott, 10/31)

Another person in Illinois has died from an injury linked to vaping, the Illinois Department of Public Health announced Thursday, the third such case confirmed in the state. “The unfortunate death of a third Illinois resident underscores the seriousness of these lung injuries,” Illinois state health director Ngozi Ezike said in a statement. (Frazin, 10/31)

Social conservatives are urging President Trump’s administration to not back away from plans to include mint and menthol flavors in a ban on flavored vaping products. The leaders of Eagle Forum and the Republican National Committee’s (RNC) former director of faith engagement, along with others, sent Trump a letter Wednesday expressing concern over a recent report that the Trump administration was reconsidering banning mint and menthol products amid pressure from e-cigarette advocates. (Chalfant, 10/31)