Star Scientific shares soar on legal ruling

August 25, 2008

NEW YORK --Shares of tobacco company Star Scientific Inc. soared Monday afternoon after it said an appeals court ruled in its favor in a patent lawsuit against RJ Reynolds Tobacco Co., the nation's second-biggest tobacco company.

Star shares rose 85 cents, or 50 percent, to $2.51 in early afternoon trading, and traded as high as $2.98, its highest point in a year.

The U.S. Court of Appeals for the Federal Circuit reversed a lower court ruling in a patent infringement lawsuit about a method of reducing carcinogens in cigarettes, and the case will go be continued in the U.S. District Court of Maryland for further proceedings.

RJ Reynolds is owned by Reynolds American Inc. Its brands include Camel and Kool.