
Reynolds American (RAI) Stock Gains on Supreme Court Ruling
NEW YORK (TheStreet) -- Reynolds American (RAI) stock is increasing 1.04% to $50.74 in mid-morning trading on Monday after the Winston-Salem, NC-based tobacco company won a lawsuit brought by European Union countries.
The U.S. Supreme Court ruled in Reynolds American's favor after the group of European countries claimed the company was running a money-laundering system related to drug smuggling into Europe, Reuters reports.
The 4-3 ruling overturned a lower-court ruling in favor of the 26 countries. The case against Reynolds American's subsidiary R.J. Reynolds will be sent back to the lower courts for additional proceedings.
The Supreme Court ruled that the Racketeer Influenced and Corrupt Organizations Act does not apply to claims related to overseas actions, Reuters added.
Separately, Reynolds American has a "buy" rating and a letter grade of A+ at TheStreet Ratings because of the company's robust revenue growth, solid stock price performance, expanding profit margins, compelling growth in net income and good cash flow from operations.
You can view the full analysis from the report here: RAI
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.










