Juul’s Consumer Settlement Is ‘Reasonable & Adequate’, US Judge Says

  • Juul Labs Inc, a unit of Altria Group (NYSE: MO), has reportedly secured preliminary court approval of a $255 million settlement resolving consumer claims for deceptive marketing.

  • The settlement is part of a larger agreement by Juul to resolve several lawsuits by school districts, local governments, and individuals accusing it of contributing to a youth vaping epidemic.

  • U.S. District Judge said the proposed class action settlement resolving claims by consumers who said they overpaid for Juul’s vaping products was “fair, reasonable, and adequate.” Reuters reported citing a court filing.

  • In December, Juul Labs agreed to pay over $1 billion to resolve about 10,000 lawsuits covering over 5,000 cases.

  • The class action settlement resolves claims for people saying they would have paid less or not bought the e-cigarettes if Juul had not downplayed the products’ addictiveness and appealed to teenagers.

  • Juul had agreed to pay $438.5 million in September to settle claims by 34 U.S. states and territories.

  • In June, the FDA briefly banned Juul’s e-cigarettes, though it later put the order on hold following an appeal.

  • Juul Labs received a new lifeline with a fresh capital infusion to stave off the proposed bankruptcy in November.

  • Price Action: MO shares are down 0.89% at $44.54 during the premarket session on the last check Monday.

  • Photo via Wikimedia Commons

Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

This article originally appeared on Benzinga.com

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source: https://finance.yahoo.com/news/juuls-consumer-settlement-reasonable-adequate-123739545.html