Philip Morris (NYSE:PM) halts online sales of Zyn nicotine pouches in U.S. amid legal scrutiny

Philip Morris International (NYSE:PM) has ceased online sales of its popular nicotine pouch brand Zyn in the United States following a subpoena in the District of Columbia concerning the sale of banned flavored products.

The company revealed that its initial investigation found sales of flavored pouches in DC, primarily through certain online sales platforms and independent retailers. 

The subpoena was served to Swedish Match North America, an affiliate of Philip Morris, as mentioned in a company filing.

Philip Morris acknowledged the potential for significant liability if the outcome of the investigation is unfavorable, and confirmed it would fully comply with the information request.

Following the announcement, Philip Morris shares fell nearly 3.5% in premarket trading on Tuesday, with analysts speculating that enforcement actions could extend beyond the District of Columbia.