In addition, the Brooke Group is seeking a nonbinding shareholder vote for an immediate spinoff.

Although Brooke Group is saddled with $375 million long-term debt amassed from various corporate deals, investors have actually profited handsomely over the years.

A spokeswoman for Brooke Group said: "The lawsuit has no merit.

Brooke Group has a 42 percent voting interest in New Valley.

Shares in the Brooke Group edged up 12.5 cents, to $5.

About two-thirds of the votes that were actually received favored an early spinoff, according to the executive close to Brooke Group.

Therefore, for Brooke Group to win the vote, it needed to receive more than 63 percent of shareholder ballots.

An industry executive close to Brooke Group expressed optimism about the tally, which will be announced on Tuesday.

In 1994, he settled a shareholder suit by agreeing to repay $20 million of personal loans from Brooke Group, his primary company.

In contrast, Brooke Group soared $1.50, to $9.875.