SEC Launches Probe Into Altria's Juul Investment
More than a year after Altria (NYSE: MO) invested $12.8 billion in electronic cigarette maker Juul Labs in exchange for a 35% stake, the SEC has launched an investigation into the transaction, according to The Wall Street Journal.
Regulators want to know if Altria adequately disclosed the risks of its investment to investors. During the 14 months since the investment was made, Altria has written off over $8 billion worth of the deal's value.
The Federal Trade Commission is also investigating what role the tobacco company may have played in Juul's CEO being ousted last year and a former Altria executive getting installed in his place.
Source Fool.com
