Owing to the rising demand for vaping, Altria (MO) made a considerable investment of 35% of $12.8 billion in e-cigarette maker Juul Labs in 2018. However, vaping related illnesses and deaths started rising in 2019.

Additionally, the FDA accused Juul Labs of using vaping marketing strategies to attract the youth, which led to mounting lawsuits against the company. As a result, Altria suffered impairment charges.

In its fourth-quarter, Altria recorded a $4.1 billion non-cash pre-tax impairment charge because of its Juul investment. Juul faced regulatory concerns by the FDA because of a rise in vaping-related lung issues and usage by youth. Currently, the FDA has placed a ban on flavored e-vapor products.

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