Why Altria Stock Slumped on Wednesday
Altria Group (NYSE: MO) stock was as popular as a used cigarette on Wednesday. The veteran tobacco company saw its share price wither by nearly 3% on the back of a U.S. Supreme Court ruling that hardly does it any favors. The stock's decline contrasted with the trajectory of the S 500 (SNPINDEX: ^GSPC), which posted an increase of 0.7% on the day.
On Wednesday, the Supreme Court handed down a ruling in a case involving flavored vapes sold by companies like Altria. The judges reversed an appeals court decision that the Food and Drug Administration (FDA) had acted unlawfully when it rejected applications from two makers of such goods (privately held Triton Distribution and Vapetasia) for their products.
That appeals court judgment asserted that the FDA violated the law when it changed the rules in the midst of the approvals process for the flavored vapes at issue. The agency appealed that ruling; hence the Supreme Court review. With the latter court's decision, the case will be sent back to the appeals court for further review.
Source Fool.com
