The Justice Department won't go to the Supreme Court to try to overturn a ruling that voided regulations requiring the placement of graphic health-warning pictures on cigarette packs. A lower appeals court agreed with tobacco firms such as R.J. Reynolds (RAI) and Lorillard (LO) that the regulations would have violated their First Amendment rights to free speech. The FDA will now formulate new rules that address the court's concerns.
Nomura (NMR) is excluded from getting a piece of the Japanese government's sale of $6B worth of Japan Tobacco shares. The dominant underwriter in Japan is thought to be being punished for its part in an insider trading operation. Will the bank be similarly excluded from the upcoming Japan Airlines IPO?
A federal judge yesterday confirmed a preliminary injunction blocking the FDA from forcing tobacco companies to put gruesome health warnings on cigarette packaging, including a corpse and cancerous lungs. "These mandatory graphic images violate the First Amendment by unconstitutionally compelling speech," the judge explained.