Past Tobacco Profits Ruled Off-Limits

Vadum, Matthew
February 2005
Bond Buyer;2/7/2005, Vol. 351 Issue 32065, p1
Trade Publication
The article reports that a U.S. federal appeals court has ruled that the government cannot force the tobacco industry to cough up profits they had earned by allegedly defrauding the public. This decision protects nearly US$27 billion in outstanding municipal bonds backed by payments under the Master Settlement Agreement (MSA). Also, it could clear the way for MSA bond deals that had been put on hold to move forward. For account, the U.S. government had sought the tobacco industry's past profits from 1954 to 2001, along with injunctive relief, such as restrictions on the marketing efforts.


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