Juul’s $440-million settlement resolves one of the biggest legal threats facing the company, which still faces nine separate lawsuits from other states
Electronic cigarette maker Juul Labs will pay nearly $440 million to settle a two-year investigation by 33 states into the marketing of its high-nicotine vaping products, which have long been blamed for sparking a national surge in teen vaping.
The state investigation found that Juul marketed its e-cigarettes to underage teens with launch parties, product giveaways and ads and social media posts using youthful models, according to a statement. Most of the limits imposed by Tuesday’s settlement won’t affect Juul’s practices, which halted use of parties, giveaways and other promotions after coming under scrutiny several years ago.
The biggest blow came earlier this summer when the FDA moved to ban all Juul e-cigarettes from the market. Juul challenged that ruling in court, and the FDA has since reopened its scientific review of the company’s technology. “We remain focused on our future as we fulfill our mission to transition adult smokers away from cigarettes – the number one cause of preventable death – while combatting underage use,” the company said in a statement.
Juul initially sold its high-nicotine pods in flavours like mango, mint and creme. The products became a scourge in U.S. high schools, with students vaping in bathrooms and hallways between classes.
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