San Francisco reaches $1 million settlement with nicotine pouch retailer Lucy Goods

Key points

• Location: United States, California, San Francisco

• Amount: $1 million settlement payment (civil penalties and attorneys’ fees)

• Parties: San Francisco City Attorney’s Office; Lucy Goods, Inc.

• Lawsuit background: filed September 2024 over flavored nicotine pouches commonly called “Zyns” and other flavored tobacco products

• Court action: stipulated judgment and injunction entered January 6, 2026 by the San Francisco Superior Court

• Totals cited: nearly $4 million in penalties and fees from the lawsuit; nearly $3 million paid by other defendants under prior stipulated judgments

2Firsts, January 9, 2026 – According to information released by the City Attorney’s Office in the United States, California, San Francisco, City Attorney David Chiu announced a $1 million settlement requiring online tobacco retailer Lucy Goods, Inc. to stop shipping illegal tobacco products into San Francisco. The settlement stems from a 2024 lawsuit alleging several online tobacco retailers unlawfully sold flavored nicotine pouches, commonly referred to as “Zyns,” to San Francisco consumers in violation of San Francisco’s flavored tobacco bans.

The release states that in October 2025 the City Attorney reached stipulated judgments and injunctions with the other defendants, and that the lawsuit yielded nearly $4 million total in penalties and fees.

Chiu said San Francisco banned all flavored tobacco products, including flavored “Zyns,” and that online retailers cannot ship banned products into the city. The release also includes statements from San Francisco Health Officer Dr. Susan Philip and Supervisor Shamann Walton.

In the background section, the release cites the 2023 California Youth Tobacco Survey, stating that most high school respondents who use tobacco reported using flavored tobacco products and that “nicotine pouches” are the second most common form of tobacco use among California 8th graders. It describes nicotine pouches as small water-soluble packets containing nicotine powder or salts placed between the gum and lip, typically sold in small round plastic canisters in fruity, minty and other flavors.

The release states that in September 2024, Chiu filed a lawsuit against Lucy Goods, Inc., Rogue Holdings LLC, Swisher International, Inc., and Northerner Scandinavia, Inc. alleging unlawful sales of flavored nicotine pouches to San Francisco consumers and violations of San Francisco’s flavored tobacco ban and California’s Unfair Competition Law.

It says the stipulated judgment and injunction with Lucy Goods, Inc., entered by the San Francisco Superior Court on January 6, 2026, requires the company to pay San Francisco $1 million in civil penalties and attorneys’ fees, prohibit the use of San Francisco addressees in shipping or billing address fields, and post clear language on its website stating flavored tobacco products may not be sold in San Francisco. The release adds that stipulated judgments with the other defendants required Rogue Holdings LLC, Swisher International, Inc., and Northerner Scandinavia, Inc. to pay San Francisco nearly $3 million.

The case is People of the State of California and People of the City and County of San Francisco v. Rogue Holdings LLC., et al., San Francisco Superior Court, No. CGC-24-617804.

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