In 2022, American e-cigarette brand JUUL faced its biggest crisis since going public. In June of that year, the FDA announced on its official website that it refused to authorize the sale of JUUL products. The FDA claimed that the company had not provided sufficient evidence to prove the safety of their e-cigarettes and demanded that JUUL remove all products sold in the United States from the market.
As early as 2019, JUUL was already facing pressure from local law enforcement agencies in the United States. That year, Josh Stein, the Attorney General of North Carolina, became the first state attorney general to sue JUUL. Lawsuits against JUUL have continued to emerge throughout the United States, including from investors of Altria. Some lawsuits have already reached a settlement, while others are still ongoing.
According to exclusive information collected by 2FIRSTS, JUUL has paid out a total of $2.6376 billion (approximately 18.2 billion RMB) in settlement funds.
The following is a compilation of information on settlements obtained through open reporting by 2FIRSTS media and from the official website of JUUL. The information is presented in chronological order and may not be reproduced without permission.
Year 2021" or "the year 2021" (depending on the context)
North Carolina state.
In June 2021, JUUL reached a settlement with the state of North Carolina, which had accused the company of being responsible for the increase in underage vaping in the state.
JUUL has agreed to the following settlement demands:
A settlement of $40 million will be paid over six years. North Carolina will allocate these funds to e-cigarette research, e-cigarette cessation programs, and e-cigarette prevention programs.
2. It is prohibited to advertise to anyone under the age of 21 in North Carolina, including through social media.
3. Limiting the number of JUUL products that residents of North Carolina can purchase online.
不符合要求时无法购买。 Translation: JUUL products will only be sold behind the counters of retailers equipped with ID scanners to ensure that customers who are underage cannot purchase the products.
Arizona state
In November 2021, the company reached a settlement with the state of Arizona, which had accused the company of engaging in illegal marketing practices targeting young consumers and downplaying the risks associated with e-cigarettes.
JUUL has agreed to the following settlement demands:
Settlement reached for $14.5 million payment
Investors of Altria
In December 2021, two companies, JUUL and Altria, reached a settlement with Altria's investors in a class-action lawsuit. The plaintiffs alleged that both Altria Group and JUUL violated the Securities Exchange Act, leading to Altria's acquisition of a 35% stake in JUUL Labs in December 2018. The investors claimed that they were harmed due to false and misleading statements made by Altria and JUUL in the following areas: [list areas].
JUUL and Altria have agreed to the following settlement demands:
A joint payment of $90 million as settlement fee.
2022年 (The year 2022)
Washington State.
In April 2022, JUUL reached a settlement agreement with the state of Washington. The state accused JUUL of marketing their products to minors and lying about the addictive nature of their products.
JUUL has agreed to the following settlement demands:
Translation: A settlement payment of $22.5 million was made.
Take measures to prevent minors from using and selling their products.
Louisiana State
On April 19th, 2022, JUUL reached a settlement agreement with the Louisiana Attorney General's office regarding a lawsuit.
JUUL has agreed to the following settlement demands:
Agreed to pay 10 million dollars.
JUUL has agreed to stop selling their products to minors in the state and to restrict their product flavors, packaging, and promotional activities.
Other states filing lawsuits
In July 2022, the following states also filed lawsuits against JUUL:
California, Colorado, Hawaii, Massachusetts, and Minnesota.
33 states and the territory of Puerto Rico have agreed to a settlement agreement.
In September 2022, JUUL agreed to pay over $438 million to settle lawsuits with nearly 33 states and the Puerto Rico region over allegations of marketing to minors. Connecticut and Texas, who led the litigation, will receive $16.2 million and $42.8 million respectively.
The agreement specifies that $438 million will be paid over a period of 6 to 10 years, with the amount increasing as the company extends the payment timeline. If JUUL chooses to extend the payment period to ten years, the final settlement amount will reach $476.6 million.
Below is the list of states that participated in the final signature.
The Puerto Rico region (not yet a formal state), Alabama, Arkansas, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Maryland, Maine, Mississippi, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, Nevada, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Wisconsin, and Wyoming have all signed the agreement.
California
In December 2022, JUUL has agreed to settle with 10,000 plaintiffs in 5,000 cases in California over product marketing and addiction issues for a sum of $1.2 to $1.7 billion.
Iowa State.
On December 29, 2022, Tom Miller, the Attorney General of Iowa, reached an agreement with JUUL to address potential violations of Iowa's Consumer Fraud Act.
JUUL has agreed to the following settlement demands:
In a period of four years, five million US dollars will be paid and targeted advertising will be improved to provide smoking cessation assistance, fund education or prevention programs, and establish research supporting the prevention of ENDS usage in Iowa.
Pennsylvania state
In December 2022, Juul reached a settlement agreement with the state of Pennsylvania to end a lawsuit filed by the state Attorney General's Office regarding Juul's marketing practices.
Juul has agreed to the following settlement demands:
As part of a settlement agreement, JUUL is required to pay $38.8 million in settlement funds. The funds will go to the Pennsylvania Department of Health's Office of Health Promotion and Risk Reduction to support programs aimed at reducing the harms alleged in the 8-year lawsuit against the company.
JUUL has agreed to cease sales to minors in the state and to impose restrictions on the flavors, packaging and promotional activities of its products.
Until now, 2023.
San Francisco
In January 2023, a United States district judge in San Francisco approved a $255 million settlement agreement to settle a class-action lawsuit. The lawsuit accused the company of deceiving consumers with their marketing of products, downplaying their addictive nature, and marketing them to minors.
Translation: Latest or Newest
On March 10th, 2023, JUUL will pay $23.8 million in a settlement to the city of Chicago. The Chicago Department of Public Health will use this funding towards programs aimed at preventing and reducing tobacco use among youth.
Related reading:
Juul reaches $24 million settlement agreement with Chicago.
A US federal court has approved a $255m class-action settlement for Juul before the trial.
JUUL has paid a total of $1.7 billion to settle lawsuits filed by 34 states.
Reference:
The FDA has refused to authorize the sale of JUUL products, meaning that currently sold JUUL products must be removed from the US market.
Juul has agreed to pay $400,000 to settle the electronic cigarette case in North Carolina.
The Attorney General of Arizona, Mark Brnovich, has reached a settlement agreement of $140,000 with JUUL.
Juul and Altria have reached a settlement agreement with investors for $90 million due to allegations of marketing to teenagers.
The electronic cigarette company, Juul, has reached a settlement with the state of Washington for $22.5 million.
The Juul lawsuit has been updated and will now extend to the year 2023.
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