Connect with us

Hi, what are you looking for?

Business

Juul reaches settlements covering more than 5,000 cases

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.

This post appeared first on NBC NEWS

    You May Also Like

    Sports

    The Kentucky Derby celebrates a major milestone in 2024, as this year’s race marks the 150th running of the traditional ‘Run for the Roses.’...

    Sports

    LOS ANGELES — As if there needed to be any more evidence of how women’s sports continue to grow, it was a raucous crowd...

    Sports

    Aaron Rodgers was scared at the possible severity of his injury when he tore his Achilles on the New York Jets’ first offensive drive...

    Sports

    The Kansas City Current have fired Carlos Jimenez, the head of its medical staff, for violating the NWSL’s non-fraternization policy. The news was first...

    Disclaimer: adviceoffate.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 adviceoffate.com | All Rights Reserved