Judge rejects request to delay tobacco sales ban

Judge Claudia Wilken said Philip Morris USA, which is owned by Altria Group, had failed to show a "likely success on the merits of its claims of irreparable harm," in a ruling issued Friday.

Shares of Altria fell $1.54, or 7.4 percent, to close at $19.35 Monday as the broader markets plunged.

Philip Morris USA, which is the nation's biggest tobacco maker, had filed a lawsuit in U.S. District Court in the Northern District of California to overturn a San Francisco sales ban on tobacco products in convenience drug stores.

Richmond, Va.-based Philip Morris has argued that the ban violates its speech rights and discriminates against manufacturers and retailers by preventing them from selling cigarettes to adults who want to buy them.

Wilken declined to grant a temporary restraining order on the city's ban, and said the delay in Philip Morris USA's filing of the request "until days before the enforcement of the ordinance belies its claim of irreparable hardship."

The ban is scheduled to go into effect on Oct. 1. The court will hold another hearing Oct. 30 in Philip Morris USA's lawsuit to challenge the ban.