Juul Labs has agreed to pay a $1.2 billion fine to settle about 10,000 lawsuits related to selling and marketing addictive e-cigarettes to teenagers.
The settlement was announced Tuesday without disclosing the fine, and it consolidated lawsuits about personal injury, consumer class action, government and Native American tribe cases, according to the New York Times. The fine was reported by Bloomberg and the company has secured an investment to pay it, the Times reported.
Juul has agreed to pay $1.2 billion to resolve about 10,000 lawsuits targeting the e-cigarette maker as a major cause of a US youth-vaping epidemic, sources say https://t.co/ByUBUKORA9 https://t.co/fiiqIAWGDs
— Bloomberg Quicktake (@Quicktake) December 9, 2022
“These settlements represent a major step toward strengthening Juul Labs’ operations and securing the company’s path forward to fulfill its mission to transition adult smokers away from combustible cigarettes while combating underage use,” the company said in a statement. A Juul spokesperson pointed to the statement following a request for comment by the Daily Caller.
Juul has been accused of contributing to a surge in youth vaping by marketing its product to teenagers and selling addictive flavors, which have been banned by the Food and Drug Administration. The company’s e-cigarettes have the appearance of USB flash drives and its products have particularly high nicotine levels according to the CDC.
The company agreed to pay $438.5 million in Sept. to settle an investigation by three dozen states over marketing and sales practices that allegedly contributed to a teenage vaping crisis, New York Times reported. (RELATED: Biden Regular Sues Microsoft)
The investigation showed that Juul marketed to young people by hiring models, using social media, giving free samples and selling flavors such as mango and creme brulee. Its age verification was “porous” and 45% of its Twitter followers were aged 13-17, the Times added.
Juul is awaiting the results of an additional FDA review after its products were banned from U.S. markets in June. The FDA opened the review after Juul won an administrative stay by a federal appeals court, Reuters reported.