For those interested in a 9.7% yield…
Altria Group, Inc. (Altria) (NYSE: MO) today announced that its Board of Directors declared a regular quarterly dividend of $0.32 per common share, payable on January 9, 2009, to stockholders of record as of December 24, 2008. The ex-dividend date is December 22, 2008.
Disclosure (“none” means no position):Long MO
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Highlights:
• Adjusted diluted earnings per share from continuing operations up 15% to $0.46 versus $0.40 in the third quarter of 2007
• Altria reaffirms its 2008 guidance for adjusted diluted earnings per share from continuing operations in the range of $1.63 to $1.67, representing a growth rate of approximately 9% to 11%, from a base of $1.50 per share in 2007
• Reported diluted earnings per share from continuing operations of $0.42 versus $0.43 in the third quarter of 2007
• Altria’s proposed acquisition of UST passes federal antitrust review
• Philip Morris USA’s adjusted operating companies income up 6.3% versus the third quarter of 2007
• Marlboro delivers strong retail share gains, up 0.5 share points versus the third quarter of 2007 to 41.6%
Altria trades at it growth rate and sports a 6.8% yield.
The UST (UST) deal will cause margin expansion as the smokeless area is both high margin and a growth area for tobacco currently. Altria (MO) is getting in a the top of the heap there also..
Disclosure (“none” means no position):
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One bear finally turns…
Whitney is buying more Berkshire Hathaway (BRK.A), MLP’s (natural gas pipelines), Target (TGT). He also said Altria (MO), J&J (JNJ), Coke (KO) were “amazingly cheap”.
Disclosure (“none” means no position):Long MO, none
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Altria’s (MO) purchase of UST (UST) has passed regulatory review.
Altria today announced that the Federal Trade Commission has granted early termination of the initial waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and therefore no further regulatory review by the federal antitrust authorities is required in connection with Altria’s acquisition of UST for $69.50 per share in cash.
Completion of the transaction remains subject to UST shareholder approval and certain other customary closing conditions. UST is in the process of scheduling a special shareholder meeting for on or about December 4, 2008, during which UST’s shareholders of record as of the close of business on October 23, 2008 will vote upon the proposed transaction. Details of the shareholder meeting will be contained in the proxy statement which UST expects to mail during the week of October 27th. If approved and all other conditions to closing are satisfied, the transaction is anticipated to close no later than January 7, 2009.
for those who have not noticed, buying Altria shares now will give you a 6.7% (and growing) yield on your invested money. Earnings, about as stable as they come will grow 10% plus through product sales and share repurchases.
No matter what the economy, folks are still lighting up and chewing.
Disclosure (“none” means no position):Long MO
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Altria (MO) is asking the US Supreme Court to dismiss a class action lawsuit by Maine smokers who say they were misled into believing that “low tar” and “light” cigarettes are a healthier alternative to regular cigarettes.
The smokers filed suit against Philip Morris USA and its parent company, Altria, charging that the companies engaged in a decades-long fraud on Maine smokers in violation of state laws against deceptive business practices.
Altria is arguing that its products are regulated by federal law and the Federal Trade Commission (FTC), not the State of Maine. Earlier, a Federal Judge agreed and dismissed the smokers’ suit then the First US Circuit Court of Appeals in Boston reinstated the action, ruling that the state lawsuit is not preempted by federal law.
On Monday, the dispute, Altria Group v. Stephanie Good comes before the US Supreme Court, where the justices will decide whether the Maine suit can proceed to trial or must be dismissed because it intrudes into the exclusive realm of a federal regulatory agency, the FTC.
Under Chief Justice Roberts, the court has previously proven sympathetic to similar pro-business preemption arguments. Last February, for instance, the court in Riegel v. Medtronic concluded that a federal statute blocked state lawsuits over certain medical devices.
“A general common-law duty (not to deceive) can be preempted by a specific statute,” Roberts noted pointedly Monday. Also, Associate Justice Anthony Kennedy told the attorney for the smokers, “I have difficulty in accepting your position in this entire case.”
Altria argues the case falls under the “Labeling Act” which directed how cigarette could label their products and thus the suit has no merit. They are right. They labeled their products based on FTC guidelines. If anything, the smokers ought to go after the FTC, as the justices angrily said to the FTC during the hearing “you created this mess”.
The Supreme Court will rule in the case by July 2009
Disclosure (“none” means no position):Long MO
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Did you get burned on housing, Fannie (FNM) or Freddie (FRE)? Did you not buy Altria (MO) in 2000, yielding over 9% and miss out on 24% a year since? If you did it is because you have not read James Grant’s Interest Rate Observer or, if you did, you ignored it to your own peril.
First the boilerplate stuff:
Collected from speeches and editorials by Grant, the editor of Grant’s Interest Rate Observer, these essays are remarkable for their prescience: two years before subprime mortgages collapsed, the author described them as “not one borrower left behind” and when other analysts were worried about the effect of a Fed interest rate increase, he foresaw that the “risk to house prices lies not with interest rates but with lending standards.” Other chapters attack bubbles in stocks and the dollar with erudition and wit (“Economics, mistaking itself for physics, is wont to turn up its nose at history, but the past has much to teach”; “as dress on Wall Street has become more casual, so have the monetary arrangements… the gold standard and swallowtail coats have given way to Greenspan and open-neck shirts”). It’s hard to imagine reading any other investment newsletter even a week after publication. Grant’s is the exception; it paints on a larger canvas and is infused with the author’s generous spirit and rich sense of humor. (Nov.) — Publishers Weekly, September 22, 2008
Collected from speeches and editorials by Grant, the editor of Grant’s Interest Rate Observer, these essays are remarkable for their prescience: two years before subprime mortgages collapsed, the author described them as “not one borrower left behind” and when other analysts were worried about the effect of a Fed interest rate increase, he foresaw that the “risk to house prices lies not with interest rates but with lending standards.” Other chapters attack bubbles in stocks and the dollar with erudition and wit (“Economics, mistaking itself for physics, is wont to turn up its nose at history, but the past has much to teach”; “as dress on Wall Street has become more casual, so have the monetary arrangements… the gold standard and swallowtail coats have given way to Greenspan and open-neck shirts”). It’s hard to imagine reading any other investment newsletter even a week after publication. Grant’s is the exception; it paints on a larger canvas and is infused with the author’s generous spirit and rich sense of humor. (Nov.) –Publishers Weekly
The book:
Grant is a scathing critic of the Fed and its now decade use of low interest rates to prop up economic growth. In the mid 1990’s Grant predicted, almost to the tee, the current situation we find ourselves in today. Article after article warned of the tenuous (at best) situation at Fannie and Freddie and described in detail how gluttonous subprime lending, caused by irresponsibly low interest rates (and government mandate) was going to cause a collapse of the housing market, and then due to securitization, a banking crisis. Anyone read the papers lately?
Grant avoids to common thread today of laying blame on a political party or a particular person. He instead lays the majority of it at the feet of the Fed. Grant argues, successfully I think, that massive Fed liquidity injections and 1% interest rates, causing an actual negative real rate of interest (the interest you receive minus the rate of inflation) lead to yield hunting. The easiest way to accomplish it was to lend the money to hungry home buyers and owners. When the AAA rated buyers were exhausted, yield hunters moved down the credit chain.
When they reached the bottom of the yield chain, they moved on to alternate mortgages (interest only, no money down, no verification etc.). All the while, the loans were being combined, sliced and diced in to CDO’s, MBS’s and a whole litany of cryptic letter denominated securities. These were sold to other yield hunters and provided more cash for additional lending.
Grant argues that much of what we are experiencing today may have been avoided had we accepted 3% plus GDP growth was not a mandate, kept interest rates at more of a sane level, fought inflation rather than accepting it and kept the dollar from depreciating.
For over a decade, Grant laid out a thesis that doing the above would avoid the mess we find ourselves in today. Now ,agree or not with what he says, it would be hard to believe and make a convincing argument he was this right for all the wrong reasons.
When you put this book down you will say what I did 1/4 of the way through, “Had I only read James Grant 10 years ago”. You could have made a bundle, or, more importantly saved one..
Pre-order the book here:
Disclosure (“none” means no position):Long MO, None
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Here is the new closing information on the Alria (MO) & UST (UST) deal.
SECTION 1. Amendment to the Merger Agreement.
(i) Section 1.2 (Closing) of the Merger Agreement is hereby deleted in its entirety and replaced with the following:
“Unless otherwise mutually agreed in writing between the Company and Parent, the closing for the Merger (the “Closing”) shall take place at the offices of Hunton & Williams LLP, 200 Park Avenue, New York, NY at 10:00 a.m. (Eastern Time) as promptly as practicable (but in no event later than the third (3rd) business day) following the satisfaction or waiver of the conditions set forth in Article VII (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions), provided that (a) if any required pre-approval of any authority regulating the wine Business Unit has not been obtained at the time all conditions set forth in Article VII have been waived or fulfilled (other than those conditions that by their nature are to be satisfied at the Closing), then Parent by written notice to the Company may extend, from time to time, the Closing up to a date not beyond the four (4) month anniversary of the date of this Agreement), and (b) at its sole discretion, Parent by written notice to the Company may extend, from time to time, the Closing up to a date no later than January 7, 2009 (the “Closing Date”). For purposes of this Agreement, the term “business day” shall mean any day other than a Saturday or Sunday or a day on which banks are required or authorized to close in the City of New York.”
FULL FILING
Disclosure (“none” means no position):Long MO
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A sign of the times, the deal will get done, just a month later..
-Altria Group, Inc. (Altria) (NYSE: MO) and UST Inc. (UST) (NYSE: UST) today announced that the companies have amended the September 7, 2008 agreement pursuant to which Altria has agreed to acquire all outstanding shares of UST. The amendment sets forth Altria’s and UST’s agreement to extend, at Altria’s option, the closing date of the transaction to a date that is no later than early January 2009 in the event conditions for closing are met prior to the end of 2008. While Altria currently has fully committed financing to complete the transaction, Altria’s lenders advised that it would be preferable to close the transaction in 2009. The parties also agreed to increase the “reverse termination fee” from $200 million to $300 million under certain circumstances, which are detailed in the amendment. In addition to the regulatory review process, completion of the transaction remains subject to UST shareholder approval and certain other customary closing conditions. The agreement and the amendment are filed with the Securities and Exchange Commission on September 8 and October 3, respectively.
Disclosure (“none” means no position):
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Safe 5% yield and 10 times earnings….picked up some for $24.77 a share Friday morning.
I first got real interested in GE (GE) last week when shares hit $23 and change but did not pull the trigger.
Yesterday, GE lowered guidance for the quarter and the year. Not real surprising given conditions out there but two questions I has were answered. Was the dividend safe, and was their ‘AAA’ rating safe. The answer to both was yes.
Why does ‘AAA’ matter? Consider there are only 6 companies that carry that rating, Automatic Data Processing (ADP), Berkshire Hathaway (BRK), GE (GE), Johnson & Johnson (JNJ), Exxon (XOM), and Toyota (TM). It simply means safety and low cost of capital. In these times, with the inevitable credit contraction with us for years, a ‘AAA’ rating will take on more importance.
The dividend. I like high, safe dividends. I currently hold Altria (MO) at 6%, Phillip Morris International (PM) at 4%, Dow Chemical (DOW) at 5%, Wells Fargo (WFC) at 4% dividend yields. Now we’ll ad GE at 5%. All of the above had dividends that, were they to be forced to be cut, simply would mean economic conditions have deteriorated to the point that the actual dividend cut would be the least of all our worries.
Watch the following video from Thursday. Please ignore CNBC’s Melissa Francis saying GE Capital was a “buy to sell” model. It isn’t (that has been discussed here on this blog before as a reason to maybe buy GE shares). It is a “buy to hold” and Immelt corrects her…how could she get that wrong? She just interviewed her boss and had the business model for the company’s main profit driver wrong….I bet it will come up at review time. Anyway, the video.
Here is an interview with Charlie Rose from March:
I think it is safe to say Immelt as GE (along with virtually every economist and other business leader) underestimated to the scope of the current crisis. That being said, I can’t single him out as “being wrong” about the future. But, if we look at the various businesses, one must be encouraged. GE is global in scope and will benefit from global growth. It’s financial services, being hit hard by the crisis, still maintain ‘AAA’ ratings despite the turmoil. That means very attractive opportunities will arise for GE that other lenders will not get, or be able to fund.
Now, the Immlet bashers will point to thew stock being near $60 a share in 2000 (yielding less than 1%) and want his head for its fall. But, GE made $1.27 a share that year. So, if you paid 47 times those earnings in 2000, Immelt is not the problem, you are. Paying 47 times earnings for a conglomerate the size of GE, is well ,for lack of a better word, just moronic. But, 10 times earnings with a 5% yield?
Essentially a bet on GE at this time is a bet on the global growth story, at a very good price, and a 5% yield. It may take some time to pan out, but i think it will, handsomely.
Disclosure (“none” means no position):Long GE,MO,PM,WFC,DOW
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After decades of defending itself against lawsuits. Altria (MO) is
From Marketwatch
Philip Morris USA said it filed a suit to overturn a San Francisco law that would ban convenience drugstores from selling tobacco products. Altria is the Richmond, Va., tobacco company. Philip Morris said late on Wednesday that it sued in U.S. District Court for the Northern District of California, asking the court to declare the ordinance unconstitutional. The city Board of Supervisors has passed the law, and a separate suit in state court has also challenged the ordinance, Philip Morris said. “Although called a ban on sales,” the law suppresses “communications directed to adult smokers, in violation of our constitutional rights,” said Joe Murillo, Altria client-services vice president and associate general counsel, said in a statement
This is great. Tobacco is a legal product. You cannot ban the sale of a legal product to those legally allowed to use it, period. It is also nice to see Tobacco go on the offensive rather than sitting back.
Next up, Master Settlement Refunds…
Disclosure (“none” means no position):Long MO
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Phillip Morris International (PM) has closed the acquisition of Canadian cigarette maker Rothmans Inc. after receiving Canadian Gov’t approval.
Philip Morris said owners of about 47 million shares or 68% of the company, had accepted its offer of 30 Canadian dollars (about $28.16) per share. It will pay for those shares on Friday. They extended their offer by 10 days to allow shareholders to tender remaining shares.
This follows an industry trend of consolidation. Altria (MO) said earlier this month that it would buy smokeless tobacco maker UST (UST). And in January, Imperial Tobacco (IMT) bought Franco-Spanish company Altadis.There is much speculation about a possible eventual buyout of Lorillard (LO), which was spun off from the Loews (L) recently.
In Q2, PM started production of Marlboro cigarettes at two factories in China and have a partnership with the state-owned China National Tobacco, the only tobacco company in the world larger than Philip Morris International itself.
Rothmans owns 60% of Rothmans, Benson & Hedges Inc., which makes and sells cigarettes including Benson & Hedges, Craven A and Mark Ten. Philip Morris owns the remaining 40%.
PM pays 4% dividend and is growing earnings 15% to 20% in a market it has just begun to enter full force. this is one of those “buy it and put it away” investments.
Disclosure (“none” means no position):Long PM, Mo, none
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Here are the details of the Altria (MO) UST (UST) deal.
Here is the letter from the Chairman and CEO.
Subject: Altria Group, Inc. Agrees to Acquire UST Inc.
I write with exciting news. This morning, Altria Group, Inc. (Altria) and UST Inc. (UST) announced that they have entered into a definitive agreement for Altria to acquire all outstanding shares of UST, the world’s leading moist smokeless tobacco (MST) manufacturer. The transaction is valued at approximately $11.7 billion, which includes the assumption of approximately $1.3 billion of debt. Click here to view today’s press release.
We are sending you these materials in advance of broad employee distribution because you have an important leadership role in explaining this transaction to our organizations.
Thus, please emphasize the following points with your respective staffs:
• This acquisition advances Altria’s mission to own and develop financially disciplined businesses that are leaders in responsibly providing adult tobacco consumers with superior branded products.
• The combination of Altria and UST will, upon closing, create the premier tobacco company in the United States with leading brands in cigarettes, smokeless tobacco and machine-made large cigars.
• The MST segment is growing; our acquisition of the number one and number two brands in this segment will immediately provide the company with national scale, once the transaction is closed.
• Marlboro Snus and Marlboro MST will remain in test market. These test markets have provided us with numerous learnings about the smokeless tobacco category.
• As stated in the press release, the transaction is subject to regulatory review and approval, and UST shareholder approval, prior to closing. In the meantime, there should be NO communication with UST except as coordinated and managed by the transaction team led by Howard Willard.
• All communications regarding the transaction must be reviewed and approved in advance by the Corporate Communications Department.
• Any external inquiries about the transaction should be immediately forwarded to Corporate Communications or Investor Relations.
I think the fact that Marlboro Smokeless and Snus are remaining in “test” is an admission that Altria had hit a wall with the products and acquiring UST was the best option remaining to not only enter the market, but to dominate it.
JP MORGAN (JPM) COMMITMENT LETTER
FULL SEC MERGER FILING
Disclosure (“none” means no position):Long MO, none
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Wow, I guess those who predicted the death of Altria (MO) due to the decline in smokers jumped the gun just a bit?
Altria announced the purchase of UST (UST) will:
— Creates a total tobacco platform with superior premium tobacco brands that includes Marlboro, Copenhagen, Skoal and Black & Mild
— Accretive to adjusted diluted earnings per share within twelve months of closing
— Generates estimated annual synergies of $250 million by 2011
— Diversifies Altria’s revenues and operating income
In the release, Altria said they:
Entered into a definitive agreement for Altria to acquire all outstanding shares of UST, the world’s leading moist smokeless tobacco (MST) manufacturer. Under the terms of the agreement, shareholders of UST will receive $69.50 in cash for each share of common stock held. The transaction is valued at approximately $11.7 billion, which includes the assumption of approximately $1.3 billion of debt.
“The combination of Altria and UST creates the premier tobacco company in the United States with leading brands in cigarettes, smokeless tobacco and machine-made large cigars,” said Michael E. Szymanczyk, Chairman and Chief Executive Officer of Altria. “We are excited about this strategic and financially attractive acquisition as it will enhance our ability to deliver superior shareholder return that is expected to exceed our 12% goal. This transaction is consistent with our growth strategy of making disciplined investments in adjacent categories. UST provides Altria with the leading premium brands, Copenhagen and Skoal, in the highly profitable MST category. We will also acquire Ste. Michelle Wine Estates, a premium wine business, as part of the transaction.”
Upon completion of the transaction, Altria’s operating companies will offer adult tobacco consumers a diverse range of superior premium tobacco products with strong brands including Marlboro, Copenhagen, Skoal and Black & Mild.
“This all cash transaction delivers compelling value to UST’s shareholders,” said Murray S. Kessler, Chairman and Chief Executive Officer of UST. “UST’s growth strategy will clearly be enhanced by Altria’s resources and infrastructure.”
Based on UST’s three-month average stock price of $53.90, this offer represents a premium of 28.9% to UST’s shareholders.
The transaction is subject to UST shareholder approval and customary regulatory approvals, which will be pursued promptly. A copy of the agreement containing all the terms of the transaction is filed today with the U.S. Securities and Exchange Commission.
The transaction does not change Altria’s 2008 guidance for adjusted full-year diluted earnings per share from continuing operations, which is expected to be in the range of $1.63 to $1.67. This range represents a 9% to 11% growth rate from an adjusted base of $1.50 per share in 2007.
Financial Benefits
Altria expects the acquisition of UST to be accretive to adjusted diluted earnings per share within twelve months of closing and to generate an attractive double-digit economic return.
The integration is anticipated to generate approximately $250 million in annual synergies by 2011, primarily driven by reduced selling, general and administrative and corporate expenses. Altria believes that these estimated synergies will enable the company to deliver increased shareholder and consumer value.
The UST acquisition is expected to grow and diversify Altria’s operating income and net revenues. For the first half of 2008, reported operating income for Altria and UST was $2.6 billion and $451 million, respectively. If Altria had owned UST since the beginning of 2008, Altria’s first half of 2008 net revenues would have increased 10.3% to $10.4 billion as shown in Table 1 below.
Altria generates approximately $3.5 billion of operating cash flow per year. After the acquisition Altria expects to generate over $4.0 billion of operating cash flow per year. Altria continues to be committed to returning a large majority of this cash to Altria shareholders through a combination of dividends and share repurchases. Altria anticipates maintaining a dividend payout ratio of approximately 75% post-transaction. Payments of future dividends will be at the discretion of the Altria Board of Directors.
In conjunction with the acquisition agreement, Altria has modified its share repurchase program. The Board of Directors has approved a three-year (2008 to 2010) $4.0 billion program, replacing a previously announced two-year $7.5 billion program. This modified program facilitates financing the UST acquisition. Altria spent approximately $1.2 billion repurchasing 53.5 million shares of its stock in 2008, and the company expects to resume purchasing stock against this modified program in 2009.
Financing
Altria has received new committed bridge financing totaling $7.0 billion from Goldman Sachs & Co. and J. P. Morgan which, together with its existing credit facilities and cash, is expected to be more than sufficient to fund the transaction. Altria intends to access the public-debt market to refinance a portion of its credit facilities. To help Altria achieve the highest credit ratings on such refinancings, Philip Morris USA Inc., a wholly-owned subsidiary of Altria, has issued guarantees for Altria’s debt.
The beauty of it all, it is an all cash deal, not dilutive to current stockholders and UST products now become 10% of Altria revenues. EPS is 2008 grow 9% to 11% and the stock yielded, before the deal 6%.
Now, if you had invested before the deal, you’d still be getting your 6% yield and now have a company that will grow earnings 10% plus, just diversified its earnings into a growth product and dominates the markets it operates in.
Problem?
FULL PRESS RELEASE
Disclosure (“none” means no position):Long MO, none
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The deal between Altria (MO) and UST (UST) will make Altria the clear leader in both smokeless and traditional tobacco. It also must be an admission that their offering will enter the “non premium” space below the Copnehagen and Skole offerings from UST.
The deal, rumored to be worth more than $10 billion could be announced as early as Monday, though the timing could be sooner given media reports of the negotiations. UST shares are up 24 percent in trading from a close of $54 on Thursday. As expected, Altria spokesman David Sylvia declined to comment on speculation about a deal. A UST spokesman could not be reached for comment.
Given the long term future of smoking, Altria moving into this market is a must. Even if Altria is forced to raise their price to $70 a share, that would only represent a 16% premium to UST’s January high, not expensive by any means given the brands in UST control.
It would also ad about $1 billion a year in earnings (rough number not accounting for synergies) to the $4 billion Altria already produces.
The larger point here would be gaining access to UST sales and distribution channels for its own smokeless offering. Rather than develop these, a UST purchase simply allows those folks to begin offering and pushing Altria’s smokeless products through their channels. That, is a very valuable asset for Altria.
It also means Altria, in one swoop now becomes the player in the smokeless market, whereas now they are sitting on the sidelines.
If you are going to buy into a markets, go for the top of it.
Disclosure (“none” means no position):Long MO, none
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The real last legal hurdle for Altria (MO) ought to be finally settled this fall /spring.
U.S. v. Philip Morris: Topping the list is United States v. Philip Morris, an appeal of the decade-long civil racketeering case against the tobacco industry. Philip Morris, now known as Altria Group, is challenging the 2006 verdict which found that it and six other Big Tobacco defendants conspired for years to deceive the public about the health risks of tobacco. In addition to upholding the lower-court verdict, the government is asking the court to order the tobacco industry to pay more than $12 billion to fund a smoking cessation program and to fund an educational, counter-marketing campaign. Miguel Estrada of Gibson Dunn and Michael Carvin of Jones Day plan to argue the case on behalf of Altria.
What happened?
After several years of pretrial activity, during which all of the government’s theories except for the civil RICO claims were dismissed, a federal judge began hearing trial testimony in September 2004. During trial, the U.S. Court of Appeals issued a major ruling disallowing much of the relief (disgorgement of profits) sought by the government.
On August 17, 2006, U.S. District Court Judge Gladys Kessler ruled that PM USA, Altria Group and the other cigarette companies violated civil provisions of the Racketeer Influenced and Corrupt Organizations Act (RICO). The court refused to order the companies to pay $10 billion for a smoking cessation program or $4 billion for a “counter-marketing” youth advertising program sought by the government but found, among other things, the companies must remove descriptors such as “light” or “ultra light” from cigarette packages and publish statements concerning smoking and health issues.
On October 31, 2006, the U.S. Circuit Court of Appeals for the District of Columbia stayed implementation of Judge Kessler’s remedies order until the companies are able to appeal the merits of the case. In the interim, all remedies ordered in the case have been stayed. The defendants are now asking the appeals court to set aside the ruling in its entirety. The Government is asking for the $12 billion in damages they sought to be reinstated.
What will happen?
When you consider in 1997 Attorney General Janet Reno declared at a Congressional hearing that “the federal government does not have an independent cause of action” against the tobacco industry for violations of Medicare or Medicaid statutes, one has to wonder why we are even at this point.
Expect the decision to be upheld, the gov’t is grasping desperately at straws on this one.
Disclosure (“none” means no position):Long MO
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