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Tobacco Firms Exposed To New $200 Billion Claim ($$) 

At 4 p.m. in New York Stock Exchange composite trading, Altria shares were down $5.26, or 6.4%, to $77.06. Reynolds shares fell $2.27, or 3.7%, to $59.75. . . .

"Today's decision inevitably delays any restructuring," William Ohlemeyer, associate general counsel for Altria, said in a conference call with analysts and investors. "Today's decision, however isolated it is, is not a step toward clarity [regarding litigation]; it is a step back of sorts," Mr. Ohlemeyer said.

Plaintiffs in the class-action suit could seek to block the restructuring with a court injunction by arguing that the breakup of Altria might jeopardize their ability to collect any damages they might win. As a result, some observers now believe the board might delay a spinoff until an appellate court reverses Judge Weinstein's class-certification decision, which might not happen for another year -- if at all. . . .

"There is a real question of whether the ruling will hold up on appeal," says Robert L. Rabin, a professor at Stanford Law School. "Class actions in tobacco haven't fared well, and we have to see whether the Second Circuit will be receptive to Weinstein's action."

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