E-cigarette maker Juul Labs Inc has agreed to pay $462 million to settle claims from six US states, including New York and California, that it illegally marketed its addictive products to minors, a person familiar with the case said Wednesday. affair.
With the agreement, Juul will have reached an agreement with 45 states for more than one billion dollars. The company did not admit wrongdoing in the deal, which also included Colorado, Illinois, Massachusetts and New Mexico, as well as the District of Columbia.
Juul is still facing a lawsuit from Minnesota, where a trial is underway. On going, as well as lawsuits or open investigations by Florida, Michigan, Maine and Alaska. In addition to the state agreements, the company agreed last year pay $1.7 billion to resolve thousands of lawsuits from local government entities and individual consumers.
Under pressure from regulators, Juul in 2019 withdrew most of its flavors from the market and halted much of its advertising. Last June, the US Food and Drug Administration briefly banned the products, though it put the ban on hold and agreed to reconsider the action after the company appealed.
Juul’s former biggest investor, cigarette maker Marlboro Altria Group Inc, is also facing claims over its alleged role in marketing Juul’s e-cigarettes, and has not reached a settlement.
Altria announced last month that it had given up its investment in Juul in exchange for some of the Juul intellectual property. As of December, his stake in Juul was valued at $250 million, up from $12.8 billion in 2018.
The head of the FDA’s center for tobacco products said last year that e-cigarette use among teens in the US remained at «concerning the levelsand posed a serious risk to public health. Federal health officials said last October that approximately 2.55 million U.S. middle and high school students reported using e-cigarettes over a four-month period in early of 2022.
Most e-cigarettes contain nicotine, the addictive substance found in regular cigarettes, cigars, and other tobacco products. Nicotine in adolescence can to damage the parts of the brain that control attention, learning, mood and impulse control, according to the Centers for Disease Control and Prevention. The CDC has also said that using nicotine as a teenager may increase the risk of future addiction to other drugs.