E-Cigarette Manufacturer Juul to Pay $438.5 Million Settlement

E-Cigarette Manufacturer Juul to Pay $438.5 Million Settlement

E-Cigarette Manufacturer Juul to Pay $438.5 Million Settlement 1080 1080 Panter, Panter & Sampedro

After a two-year investigation by thirty-three states into Juul’s alleged marketing to teens, the e-cigarette manufacturer has agreed to a $438.5 million settlement. The investigation concluded that Juuls willfully and aggressively engaged in a marketing campaign targeted at teenage users by hosting launch parties, producing advertisements and social media images featuring young users, and offering free samples. Included in the settlement, are strict injunctions that would severely limit their future marketing and sales practices.

Further, Juul was found to have altered the chemical composition of its product to make it less irritating to the throats of inexperienced users and produced flavors known to be attractive to younger individuals. Using age-verification techniques known to be ineffective, the company was also able to secure its young customer base, while using misleading packaging that led users to believe that the product had less nicotine content than it did. 

The company also failed to obtain U.S. Food and Drug Administration approval to market its products as smoking cessation devices. An earlier FDA announcement stated that Juul products would be removed from the U.S. market. However, the company was granted a temporary respite and continued sales. The reprieve will remain in effect while the FDA reviews whether or not the product is a smoking cessation device.

A group of 39 state attorney generals began investigating Juul’s products in February 2020. In July 2021, Juul agreed to a $40 million settlement with the state of North Carolina after a lawsuit was filed by state Attorney General Josh Stein accusing Juul of employing unfair and deceptive practices that enticed young people to use its vaping products. As part of the settlement, the manufacturer also agreed to take actions to prevent the use of its e-cigarettes by underaged individuals. 

This month’s almost $440 million settlement was announced by Connecticut attorney general William Tong on behalf of thirty-three states and Puerto Rico. The settlement will be paid out to the states named in the multidistrict lawsuit over a period of six to ten years. 

Juul continues to face nine separate lawsuits from other states. Additionally, the company is involved in hundreds of personal injury lawsuits initiated on behalf of teenage consumers who claim they have become addicted to Juul products.  

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