With the recent blow of a giant $23.6 billion judgement, you can bet they will recover. Reynolds has shrugged it off as no big deal. It is a huge sum but tobacco while on the decline will always have a huge following. Reynolds has bounced back from many judgements, and while not this large I suspect they will fair well again.
The drastic sell off, resulting in the price drop, for Reynolds American stock shares is a 'knee jerk' response to the multi billion dollar award by a Florida jury last week in a smoker liability case. The response doesn't take in to account that the facts of the case don't support a jury award that high and it will be reversed on remand.
The stock market continuously flucuates, especially in the light of positive or negative news feeds. In the case of R.J. Reynolds, due a landmark decision, their stock price has gone down. As time goes on & the case falls from the headlines, the stock price for R.J. Reynolds will begin to return.
As with the other big tobacco companies, R J Reynolds, and through them Reynolds American, has a major hold on consumers. People are addicted to tobacco, they're not going to suddenly stop buying it. The stock price fall is simply due to the massive judgement made against the company - a reaction that will fade. Eventually this will pass and the price will rise again.