Topline
Beleaguered electronic cigarette maker Juul agreed Wednesday to pay $462 million to settle lawsuits from six states for allegedly enticing minors to buy its addictive nicotine products through advertising, pushing the total the company has agreed to pay out for such claims to more than $2.5 billion.
Juul tobacco and menthol flavored vaping e-cigarette products are displayed in a convenience store … [+]
Key Facts
The settlement payment will resolve claims filed by California, New York, Illinois, Colorado, Massachusetts and New Mexico, along with the District of Columbia.
The lawsuits allege Juul aggressively marketed its e-cigarettes toward minors through promoting flavored products, while misleading the public about the potentially negative health consequences and the addictive qualities of its nicotine products.
Despite agreeing to pay the nine-figure sum, Juul did not admit to any wrongdoing, according to multiple reports.
A Juul spokesman told Forbes Wednesday’s settlement means “we are nearing total resolution of the company’s historical legal challenges and securing certainty for our future.”
Juul agreed in September to pay $438 million to settle lawsuits from 33 states and Puerto Rico, while it entered a $1.7 billion settlement deal in December to resolve thousands of other suits—many filed by local school districts.
Crucial Quote
“JUUL lit a nationwide public health crisis by putting addictive products in the hands of minors and convincing them that it’s harmless — today they are paying the price for the harm they caused,” New York Attorney General Letitia James said in a statement.
Key Background
Juul has long portrayed itself as a pioneer in a cultural shift away from traditional tobacco products, under the dubious claim its business is centered around “tobacco harm reduction.” But the company and the e-cigarette industry in general have come under significant regulatory scrutiny in recent years, as questions have emerged about the safety of its products and the purpose of its marketing campaigns. The Food and Drug Administration banned fruity flavored e-liquid pods in 2020, which it said contributed to “epidemic levels of youth use of e-cigarettes,” while all Juul products were set to be pulled from shelves last year after regulators said the company provided “conflicting” data about whether its pods contain harmful chemicals. A federal appeals court temporarily blocked the ban in June while Juul pursues legal action against the FDA for what it called an “arbitrary” ruling, asserting it “appropriately characterized the toxicological profile” of its vaping products. The regulatory hits have seriously impacted Juul’s business—it at one point commanded 70% of the U.S. vaping market, but the company’s sales have sharply declined in recent years while its staffing levels have been slashed in a series of layoffs.
Further Reading
Juul To Pay $438 Million To Settle Probe Into Underage Marketing Scheme (Forbes)
FDA Bans Juul E-Cigarettes From U.S. Market (Forbes)
Appeals Court Halts Ban On Juul Vaping Products—For Now (Forbes)
Juul E-Cigarette Ban Creates $1 Billion Opportunity For Vape Companies (Forbes)
Source: https://www.forbes.com/sites/nicholasreimann/2023/04/12/juul-takes-another-hit-will-pay-462-million-to-settle-lawsuits-claiming-it-advertised-to-kids/