R.J. Reynolds Says SEC Is Probing Accounting

Cigarette maker R.J. Reynolds Tobacco Holdings Inc. said the Securities and Exchange Commission had started a formal investigation into its reporting of expenses.

The SEC issued a subpoena July 3 and is reviewing whether certain costs should be quantified individually rather than grouped together, R.J. Reynolds said in a regulatory filing. The Winston-Salem, N.C.-based company, which makes Camel and Winston cigarettes, wants the information to stay secret to keep it from competitors, a spokesman said.

Shares of R.J. Reynolds fell 62 cents, or 1.9%, to $32.52 on the NYSE.