Juul can keep selling products while appealing FDA prohibition

• Juul can keep selling products while appealing FDA prohibition.
• The company must file its formal motion by Monday, and the FDA must react by July 7th.
• Analysts have hypothesised that Altria, the American corporation that produces Marlboro cigarettes, may acquire the remaining 65 percent of Juul.

A judge in the United States has granted Juul a temporary reprieve, allowing the company to continue selling its e-cigarette products while it appeals a Food and Drug Administration proposal that could shut it down in its largest market.

According to a court document viewed by the Financial Times, the US court of appeals for the DC circuit stated that the “administrative stay” should not be interpreted as a judgment on the merits of the case. Juul must now file its formal motion by Monday, and the FDA must react by July 7th.

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Juul is examining multiple contingency plans, including a possible Chapter 11 bankruptcy petition, in the event that its appeal fails. Analysts have hypothesised that Altria, the American corporation that produces Marlboro cigarettes, may acquire the remaining 65 percent of Juul.

A spokeswoman for Juul declined to comment, but the company’s lawsuit stated that the FDA’s decision was “extraordinary and unlawful” and was the result of “immense political pressure from Congress” to blame for the increase in youth vaping.

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While the FDA first focused on underage vaping, it predicated its prohibition on the notion that the corporation had provided insufficient and contradictory information regarding the “toxicological profile” of its products.