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US court judgement dampens tobacco litigation risk

The smokescreen of tobacco litigation has cleared somewhat with the reversal of the Engle case. Sentiment towards the sector has softened and this positive trend looks to continue

The US tobacco industry’s fortunes are burning brighter after Florida’s Third District Court of Appeal reversed the $145 billion verdict in the Engle class action case. For investors this brings some relief from litigation risk that has overwhelmed the tobacco giants Philip Morris, RJ Reynolds and BAT.

“ It is an extremely positive development for the industry,” says Bob Buhr, credit analyst at

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