Cashflows servicing outstanding ABS backed by tobacco litigation fees could still be in jeopardy should the Department of Justice be successful in its efforts to appeal a recent federal appellate court ruling.

The DOJ had been seeking to reclaim $280 billion in ill-gotten profits from tobacco companies under the Racketeer Influenced and Corrupt Organization (RICO) Act, a statute originally intended to prosecute the Mafia. A decision from the District of Columbia Court of Appeals earlier this month threw out the possibility of extracting a substantial financial reward. However, government lawyers have made clear their intention to appeal, according to published reports.

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