Juul, the inventor of the e-cigarette, will look at funding options
Juul Labs said it is in the early stages of exploring several...
Juul Labs, a company that makes e-cigarettes, has agreed to resolve more than 5,000 US vaping cases after being accused of marketing to teens.
In a California court, the agreement was made with around 10,000 plaintiffs. The financial details are a secret.
The company agreed to pay hundreds of millions of dollars to terminate an investigation into its advertising in September.
Juul has been compelled to make cost-cutting moves after being charged with encouraging the growth of teen vaping.
The company has consistently denied focusing on young individuals and has not previously acknowledged any wrongdoing.
Critics highlight up the flavor variety, vibrant packaging, and usage of youthful models in their advertising efforts.
According to the Centers for Disease Control and Prevention, more than 2.5 million US students smoked e-cigarettes in 2022.
Some of the people engaged in the case claimed to be unaware of the product’s potential for greater addiction than cigarettes.
Philip Federico, a lawyer who represented dozens of school districts in the case, described the settlement as a “tremendous victory for school districts burdened by the vaping epidemic”.
Juul itself said the settlement “represent a major step toward strengthening Juul Labs’ operations and securing the company’s path forward”.
Juul agreed to pay $438.5 million in the prior case to resolve accusations that it minimised the risks of its products and specifically targeted minors.
This year, the company’s products were momentarily outlawed, but in November, Juul announced that it had received investment that would allow it to continue operating.
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