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E-Cigarette Manufacturer Reaches Additional Settlements Arising From Sales and Marketing Practices


Juul Labs, Inc. (Juul) recently settled with seven additional states and the District of Columbia for $470 million, bringing the total settlement amount to over $1 billion. The settlements stem from claims that Juul illegally marketed its e-cigarettes and vaping products to underage users.

Additionally, Juul and Minnesota recently reached a settlement as a trial on similar claims neared conclusion. The specific terms of that settlement will remain confidential until settlement papers are filed, likely in the next 30 days. Minnesota is the only state to take its claims against Juul to trial thus far. 
As discussed in a prior Legal Update, Juul previously settled with 33 states for $438.5 million in September 2022. The company has been named in thousands of lawsuits by individuals, school districts, and state/local governments.[1]
In connection with these settlements, Juul agreed to restrictions on marketing, distribution, and sales to combat youth vaping, including limits on retail displays, online sales, age verification, and protocols for retail compliance.
Given the FDA’s continued emphasis on enforcing restrictions related to e-cigarette and vaping products, litigation arising from Juul products could continue for years to come, and Juul’s additional multistate settlements should continue to provide more clarity to distributors and retailers regarding the proper sale of Juul products. Additionally, whether or not the FDA allows Juul to continue selling its products in the U.S. market remains an open question in itself.
[1] Alaska, Florida, Michigan, and Missouri still have litigation against Juul pending. Other states that have settled with Juul prior to or since the September 2022 settlement include: Arizona (2021); Iowa (2022); Louisiana (2022); North Carolina (2021); Pennsylvania (2022); Texas (2023); and Washington (2022).