Reynolds Loses Appeal of Nascar Ad Limits

R.J. Reynolds Tobacco Holdings Inc. lost its appeal of a court ruling that it violated a 1998 ban on outdoor advertising by posting advertisements at Nascar auto-racing events.

The state Court of Appeal in San Diego upheld a decision in favor of California’s challenge to Reynolds’ advertising. The state argued that the tobacco company had wrongly kept outdoor billboards for a series of auto races named after its Winston cigarette brand up all year at a track outside San Francisco. The company has asked Nascar to find another sponsor for the Winston Cup racing series.

Reynolds shares fell 37 cents to $35.06 on the NYSE.