JUUL Purchasers Ask Ninth Circuit to Preserve Antitrust Classes in Case Over Altria’s $12.8 Billion Investment

Sep.23
JUUL Purchasers Ask Ninth Circuit to Preserve Antitrust Classes in Case Over Altria’s $12.8 Billion Investment
Private antitrust litigation stemming from Altria's 2018 $12.8 billion investment for a 35% economic interest in JUUL is advancing before the U.S. Court of Appeals for the Ninth Circuit. Direct purchasers, indirect purchasers and indirect resellers of JUUL products filed answering briefs this week seeking to preserve class certifications granted by a California federal court in February. Altria and JUUL argue that individual consumers and large distributors differ too much in purchasing terms to remain in a single direct-purchaser class, while a separate dispute concerns whether California antitrust law can apply to indirect purchasers across 27 jurisdictions. A September trial has been put on hold during the appeal.

Key Points

  • Direct purchasers, indirect purchasers and indirect resellers of JUUL products are asking the Ninth Circuit to preserve class certifications granted in February.
  • Altria and JUUL argue that individual consumers and large distributors differ in purchasing volume, pricing, contracts and bargaining arrangements and should not remain in a single direct-purchaser class.
  • The indirect-purchaser dispute covers 27 jurisdictions and centers in part on whether purchasers outside California can pursue claims under the state's Cartwright Act.
  • Altria disclosures show 17 proposed class actions had been consolidated into the litigation as of July 2026. Plaintiffs seek relief including treble damages.

2Firsts

September 23, 2026

According to Law360 on September 22, direct purchasers, indirect purchasers and indirect resellers of JUUL products filed answering briefs with the U.S. Court of Appeals for the Ninth Circuit this week, seeking to preserve class certifications granted in February in private antitrust litigation stemming from Altria Group's former investment in JUUL Labs.

The Ninth Circuit agreed in April to hear Altria and JUUL's interlocutory appeal of the class-certification ruling. A trial that had been scheduled for September has since been put on hold.

The appeal concerns class certification rather than a final determination of whether Altria or JUUL violated antitrust law.

Direct Purchasers Dispute Whether Consumers Can Represent Large Distributors

U.S. District Judge William H. Orrick of the Northern District of California certified the direct-purchaser class in February and partially granted certification requests for multistate indirect-purchaser and indirect-reseller classes.

The direct-purchaser class generally includes individuals and entities in the United States that purchased relevant e-cigarette products directly from JUUL or related entities beginning on October 5, 2018.

Altria and JUUL argue that the class combines individual consumers purchasing through JUUL's website with large distributors and retailers operating under separately negotiated commercial contracts.

The defendants have cited the record as showing that vape shops and large distributors accounted for about 93% of direct-purchaser volume, while the named plaintiffs are primarily individual consumers.

They argue that differences in scale, pricing, contracts and bargaining arrangements make those consumers inadequate representatives of larger commercial purchasers.

The direct purchasers responded this week that their claims arise from the same alleged anticompetitive arrangement.

They argue that class members share common theories of liability, impact and damages, including the allegation that the defendants' conduct caused purchasers to pay higher prices.

They also contend that individually negotiated distributor agreements do not by themselves create conflicting interests within the class.

27 Jurisdictions at Issue in California Antitrust-Law Dispute

A second major issue involves indirect purchasers and indirect resellers.

Under the U.S. Supreme Court's 1977 decision in Illinois Brick Co. v. Illinois, indirect purchasers generally cannot recover antitrust damages under federal law.

A number of states later enacted so-called Illinois Brick repealer laws, allowing indirect purchasers to pursue damages under state antitrust laws.

The plaintiffs originally sought to apply California's Cartwright Act to purchasers in 31 repealer jurisdictions.

The district court excluded Arkansas, South Carolina, Tennessee and Virginia, leaving the current class dispute involving 27 jurisdictions.

Altria and JUUL argue that California law should not govern purchases made outside the state and that the laws of the states where the transactions occurred should apply.

The indirect purchasers and resellers responded that the alleged conduct had substantial connections to California, including JUUL's former headquarters, key negotiations and execution of the relevant agreement.

They also argue that differences among the relevant state laws do not alter the common liability questions because each jurisdiction permits indirect-purchaser antitrust claims.

Seventeen Proposed Class Actions Consolidated Into the Case

Altria's public filings with the U.S. Securities and Exchange Commission show that 17 proposed class actions had been filed against Altria and JUUL as of July 27, 2026.

The cases were consolidated in the Northern District of California and organized into three main plaintiff groups:

Direct Purchasers, including individuals and businesses that bought products directly from JUUL or related entities;

Indirect Purchasers, including consumers who bought JUUL products through retail channels for personal use;

and Indirect Resellers, including businesses that acquired products from sources other than JUUL for resale.

The plaintiffs seek relief including treble damages, attorneys' fees and other declaratory and equitable remedies.

Class certification determines whether those claims can proceed on behalf of broader groups of purchasers rather than only the named plaintiffs.

Litigation Stems From Altria's $12.8 Billion JUUL Investment

The private litigation traces back to Altria's $12.8 billion investment in JUUL in December 2018, through which it obtained a 35% economic interest in the e-cigarette company.

Around the same period, Altria discontinued products sold by its Nu Mark e-vapor business, including MarkTen and Green Smoke.

The plaintiffs allege that Altria's exit from the closed-system e-cigarette market and subsequent investment in JUUL formed part of an anticompetitive arrangement that reduced competition and caused JUUL product purchasers to pay higher prices.

Those allegations have not been established at a merits trial.

Altria and JUUL deny wrongdoing.

FTC Administrative Case Ended, Private Litigation Continued

The U.S. Federal Trade Commission filed a separate administrative antitrust case over the Altria-JUUL transaction in 2020.

An FTC administrative law judge issued an initial decision in 2022 recommending dismissal of the agency's charges.

In March 2023, Altria transferred its JUUL equity interest back to JUUL.

On June 30, 2023, the FTC vacated the administrative law judge's initial decision and dismissed its administrative complaint in the public interest. The commission also stated that the vacated initial decision could no longer be cited as precedent.

The FTC proceeding therefore ended without a currently operative merits ruling imposing antitrust liability on Altria or JUUL.

The private purchaser litigation continued.

Ninth Circuit Granted Interlocutory Review in April

Altria and JUUL petitioned the Ninth Circuit in March for interlocutory review of the class-certification ruling under Federal Rule of Civil Procedure 23(f).

The Ninth Circuit granted the petition on April 27, and the appeal proceeded under case No. 26-2626.

The U.S. Chamber of Commerce, several legal-interest groups and a group of 14 states have filed amicus briefs supporting challenges to portions of the certification ruling.

The 14-state group has opposed applying California law to claims brought by indirect purchasers outside the state.

Altria and JUUL have also characterized the private cases as follow-on litigation to the FTC proceeding and argued that the plaintiffs are seeking substantial damages.

The JUUL product purchasers are asking the Ninth Circuit to preserve the district court's certification ruling.

September Trial Put on Hold

The district court had scheduled remaining claims for trial in September 2026.

After the Ninth Circuit accepted the class-certification appeal, Judge Orrick put the trial on hold while allowing other aspects of the litigation to continue.

Public case information currently shows no new trial date. A new schedule is expected after the Ninth Circuit resolves the appeal.

The Ninth Circuit's ruling will determine whether the JUUL product purchasers can continue litigating through the currently certified classes. Any final determination of Altria and JUUL's antitrust liability remains for later merits proceedings.

The district court case is In re JUUL Labs Inc. Antitrust Litigation, No. 3:20-cv-02345-WHO. The Ninth Circuit appeal is No. 26-2626.

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