An update on the Engle-case if you're an MO enthusiast. On Dec. 21st the Florida Supreme Court released another opinon with some changes in wording. The changes were probably the most important if you understood what the panel was trying to say. In other words, it's another win for MO and related tobacco companies.
The wording of their opinion removed the charge that conspiracy and intentional misrepresentation were involved. Both conspiracy and misrepresentation were the key words proving that fraud was in existence. With that said, MO and others no longer have to prove themselves, and instead the burden of proof must be presented by each defendent at each of their individual trials.
Again, individual trials are now required after the court threw out the entire class action suit. The door was still left unlocked after the ruling still allowed each former class member to file seperately within 12 months of their final opinion. If they do intend to file, being about 700,000 members, the risk of punitive charges still exist. Of course, if you think about it though, chances are that a very minimal number will file. Realistically, it'll be expensive to fight against top-tier corporate lawyers of a multi-billion dollar company. Not to mention that bringing up any additional evidence "outside" of what has already been presented in the class action case, will be...well, pretty much impossible.
For MO, that means they are closer to ridding this case for good. Once all done with and Engle becomes part of history, it will free up $1.5 billion in cash reserves for MO. These were previously held in an escrow account just in case it was required to pay for punitive damages. $1.5 billion can really be put into good use for company operations. Something good of course...
Splitting of Kraft news should be around the corner. I'm still as excited in this stock. Just hope that my heart can bare with it.