Juul to pay $14.5 mln to settle…

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Juul model vape cartridges are pictured on the market at a store in Atlanta, Georgia, U.S., September 26, 2019. REUTERS/Elijah Nouvelage

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  • Abstract
  • Legislation corporations
  • Associated paperwork
  • Arizona is second state to settle with e-cigarette big
  • Greater than 2,000 lawsuits pending over firm’s advertising and marketing practices

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(Reuters) – E-cigarette big Juul Labs Inc has agreed to pay $14.5 million to settle a lawsuit by the state of Arizona accusing it of fueling a vaping epidemic by advertising and marketing its merchandise to minors.

The settlement, introduced Tuesday by the workplace of Arizona Legal professional Basic Mark Brnovich, offers for $12.5 million to be put aside for anti-addiction applications. The remaining $2 million will go to a normal shopper safety fund and litigation bills.

“Right this moment’s settlement holds Juul accountable for its irresponsible advertising and marketing efforts that pushed Arizona minors towards nicotine and the dependancy that follows,” Brnovich mentioned in a press release.

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Beneath stress from regulators, Juul in 2018 pulled common flavors resembling mango and cucumber from retail retailer cabinets and shut down its social media channels on Instagram and Fb. The corporate on Tuesday mentioned it supported the anti-addiction provisions of the deal.

“This settlement is one other step in our ongoing effort to reset our firm and we applaud the Legal professional Basic’s plan to deploy sources to deal with underage use,” Juul mentioned in a press release. “We are going to proceed working with federal and state stakeholders to advance a totally regulated, science-based market for vapor merchandise.”

Arizona is the second state to succeed in an settlement with Juul over its advertising and marketing practices. The corporate beforehand agreed to pay $40 million to resolve an identical lawsuit by North Carolina.

Juul’s e-cigarettes resemble USB flash drives and work by vaporizing a nicotine-laced liquid.

In its 2020 lawsuit, Arizona accused the corporate of utilizing fruit-flavored liquid pods, social media campaigns and free giveaways to enchantment to younger clients, resulting in a spike in dependancy amongst teenagers.

The corporate nonetheless faces greater than 2,000 lawsuits, together with from state and native governments, making related claims. Marlboro cigarette maker Altria Group Inc, which in 2018 acquired a 35% stake in Juul, can also be named as a defendant in lots of the lawsuits.

Together with different e-cigarette makers, Juul was required to use for U.S. Meals and Drug Administration approval for its merchandise beneath a 2016 federal rule, although it was allowed to persevering with advertising and marketing them within the meantime. The company has not but acted on the appliance, saying in September that it wanted extra time.

The case is Arizona v. Juul Labs Inc, Superior Courtroom of the State of Arizona, Maricopa County, No. CV2020-000371.

For Arizona: Joseph Sciarrotta of the Legal professional Basic’s workplace

For Juul: David Rosenbaum of Osborn Maledon

Learn extra:

Juul to pay North Carolina $40 mln over claims it focused youth

U.S. FDA says it wants extra time to determine on Juul, different e-cigarettes

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Brendan Pierson

Brendan Pierson studies on product legal responsibility litigation and on all areas of well being care regulation. He may be reached at brendan.pierson@thomsonreuters.com.

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