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Altria Group is expected to take a $4.5 billion writedown on its original $12.8 billion investment in e-cigarette maker Juul, AP reports.
The big picture: Altria, which owns Marlboro and other nicotine products, acquired a 35% stake in Juul in 2018, which has since dropped in value amid rising health concerns and deaths related to vaping.
- Juul CEO Kevin Burns stepped down last month and was replaced by Altria executive K.C. Crosswaite. The e-cigarette company has since axed many of its flavored products in the U.S., which are argued to be marketed to youth and teen consumers.
Of note: The number of vaping deaths reached 37 as of Thursday, and illnesses have swelled to well over 1,000.
Go deeper... Expert Voices: Regulatory gaps are exacerbating the youth vaping crisis