Juul agrees to $1.7B settlement amid allegations of marketing to minors: Report

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FILE - A Juul sign hangs in the front window of a bodega convenience store in New York City on June 25, 2022. Electronic cigarette maker Juul Labs has reached settlements covering more than 5,000 cases brought by about 10,000 plaintiffs related to its vaping products. Financial terms of the settlement were not disclosed, but Juul said that it has secured an equity investment to fund it. The company has been buffeted by lawsuits and chances that it would seek bankruptcy protection, or a buyer, were elevated last month as Juul announced hundreds of layoffs and secured new financing to continue operations. (WHD Photo/Ted Shaffrey, File) Ted Shaffrey/WHD

Juul agrees to $1.7B settlement amid allegations of marketing to minors: Report

Steff Thomas
December 10, 05:37 PM December 10, 05:57 PM
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Juul Labs Inc, an electronic cigarette company, has agreed to pay $1.7 billion to settle more than 5,000 lawsuits, according to reports.

A bulk of the suits allege that the company used its marketing to target children and teenagers. Despite the settlement, Juul has denied the accusations.

The various lawsuits by more than 10,000 plaintiffs were consolidated in the U.S. District Court for the Northern District of California, with the lawsuits included dealing with personal injury, consumer class action, government entities, and Native American tribes.

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Juul also agreed in September to pay more than $438 million to settle another multistate investigation. The most recent agreement was signed on Tuesday, resolving legal liabilities that almost pushed the company to declare bankruptcy.

Sarah London, a co-lead counsel for the plaintiffs in the lawsuits, said this settlement would give victims "meaningful compensation,” according to a statement.

“The scope of these suits is enormous,” London wrote.

“These settlements will put meaningful compensation in hands of victims and their families, get real funds to schools for abatement programs, and help government and tribal entities prevent youth use of e-cigarettes across the U.S.,” she added.

The company has declined in prevalence in America after the Food and Drug Administration made moves earlier this summer to ban sales of the company’s products in the United States, though the company challenged it in court. This led the FDA to pause the ban while it appealed the rule.

The use of e-cigarettes continues to climb among young people, with the FDA finding that 2.5 million young people use them.

The full terms of the new settlement have not been released.

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