Current:Home > MyJuul settles more than 5,000 lawsuits over its vaping products -Mastery Money Tools
Juul settles more than 5,000 lawsuits over its vaping products
View
Date:2025-04-15 06:33:26
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.
Buffeted by lawsuits, Juul announced hundreds of layoffs last month and bankruptcy appeared increasingly likely as it secured financing to continue operations.
The e-cigarette maker faced thousands of suits brought by individuals and families of Juul users, school districts and Native American tribes. This week's settlement resolves those cases, which had been consolidated in a California federal court pending several bellwether trials.
"These settlements represent a major step toward strengthening Juul Labs' operations and securing the company's path forward," a company spokeswoman said in a statement.
Juul rocketed to the top of the U.S. vaping market five years ago on the popularity of flavors like mango, mint and creme brulee. But the startup's rise was fueled by use among teenagers, some of whom became hooked on Juul's high-nicotine pods.
Parents, school administrators and politicians largely blamed the company for a surge in underage vaping, which now includes dozens of flavored e-cigarette brands that are the preferred choice among teens.
Amid the backlash of lawsuits and government sanctions, Juul dropped all U.S. advertising and discontinued most of its flavors in 2019.
In June the Food and Drug Administration rejected Juul's application to keep its product on the market as a smoking alternative for adults, throwing its future into uncertainty. The FDA said Juul did not adequately address key questions about the potential for chemicals to leech from its device. The FDA has placed a temporary hold on its initial decision while Juul files an appeal.
Then, in September, the San Francisco company agreed to pay nearly $440 million to settle a two-year investigation by 33 states into the marketing of its high-nicotine vaping products.
That same month the company's largest investor, tobacco giant Altria, announced plans to resume competing on its own in the e-cigarette space.
Altria pulled its own e-cigarettes off the market in 2018 after taking a nearly $13 billion stake in Juul. But that investment has lost more than 95% of its value as Juul's prospects have dimmed, giving Altria the option to exit its non-compete agreement.
That means Juul could soon be forced to battle for space on retail shelves with Marlboro-maker Altria, along with long-standing competitors like Reynolds American's Vuse, which recently edged past Juul to become the leading U.S. vaping brand.
Juul has also settled with 37 states and territories over the last year and said it's in ongoing talks with other key stakeholders to resolve remaining litigation.
veryGood! (62355)
Related
- Will the 'Yellowstone' finale be the last episode? What we know about Season 6, spinoffs
- Youngest 2024 Olympians Hezly Rivera and Quincy Wilson strike a pose ahead of Olympics
- Company says manufacturing problem was behind wind turbine blade breaking off Nantucket Island
- What is WADA, why is the FBI investigating it and why is it feuding with US anti-doping officials?
- McKinsey to pay $650 million after advising opioid maker on how to 'turbocharge' sales
- Truck driver faces manslaughter charges after 5 killed in I-95 crash, North Carolina officials say
- Chicken wings advertised as ‘boneless’ can have bones, Ohio Supreme Court decides
- Four detainees stabbed during altercation at jail in downtown St. Louis
- Chuck Scarborough signs off: Hoda Kotb, Al Roker tribute legendary New York anchor
- Uvalde school police officer pleads not guilty to charges stemming from actions during 2022 shooting
Ranking
- New Zealand official reverses visa refusal for US conservative influencer Candace Owens
- Are schools asking too much for back-to-school shopping? Many parents say yes.
- Fewer Americans file for jobless claims as applications remain at elevated, but not troubling levels
- S&P and Nasdaq close at multiweek lows as Tesla, Alphabet weigh heavily
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
- Zoinks! We're Revealing 22 Secrets About Scooby-Doo
- Chicago police chief says out-of-town police won’t be posted in city neighborhoods during DNC
- Massachusetts governor signs bill cracking down on hard-to-trace ‘ghost guns’
Recommendation
Charges tied to China weigh on GM in Q4, but profit and revenue top expectations
Major funders bet big on rural America and ‘everyday democracy’
Judge threatens to sanction Hunter Biden’s legal team over ‘false statements’ in a court filing
Prosecutors urge judge not to toss out Trump’s hush money conviction, pushing back on immunity claim
Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
Billy Ray Cyrus says he was at his 'wit's end' amid leaked audio berating Firerose, Tish
Maine attorney general files complaint against couple for racist harassment of neighbors
Nebraska Legislature convenes for a special session to ease property taxes, but with no solid plan