MO is an interesting situation. It's hard to believe the run its had these 12 months or so.
I would short there as a play against an economic upturn rather than against the lawsuit thing. MO has benefitted as a "safe haven" even with the lawsuit stuff that has been lurking out there for years. It has had a nice run despite the lawsuit threat.
When something is hard to believe that is time to take action. You can get killed trying to drive a stock in to the ground. All qwest (small q is on purpose)had to do was fire joe nacchio to go up 23% in one day. The time to sell is when something starts to smell bad. By the time it really stinks selling is a very risky business. For every enron (one that literally goes int the ground) there are many that go to lows almost at ridiculous when compared to their previous highs. Be early not late!
Disclosure: Very LONG- Experience tell you to sit tight and accumulate this one. The Acedemics are fine and the Technicals (Psychologicals)are in a bargain basement. You are staring at a Discount sale and in 6 months all will kick their butts. I am averaging down to "offset my Average puts at $22.00". The company is a steal and this is not a Hype. Look at the numbers and do DD.