The largest shareholder of Juul, Altria Group, has requested that a US federal judge order the e-cigarette company to hand over details of a settlement, as around 10,000 plaintiffs seek to hold it accountable for the widespread use of its products among young smokers.
A Virginia-based company has filed a motion in the federal court in San Francisco, stating that the settlement agreement remains confidential and even other parties involved in the lawsuit cannot access it. According to The Wall Street Journal, the settlement agreement is worth $1.7 billion (approximately CNY 11.65 billion).
Tobacco manufacturer Altria, who owns 35% of Juul, did not participate in the settlement and is currently a defendant in a large-scale copyright infringement lawsuit consolidated by US District Judge William Orrick. The lawsuit has been filed by plaintiffs, including individuals and local government entities, who allege that the company was involved in Juul's marketing strategy to sell e-cigarettes to minors.
Altria has stated that it needs to assess its potential remaining debt and explore potential third-party claims by understanding the details and negotiations preceding the settlement agreement.
The company stated that while there may be reasons to keep settlement talks out of the public eye, Juul's refusal to share the settlement far exceeds the necessary protection required to address these concerns. There is no legal basis for this refusal, and it will severely harm Altria.
Juul and the lawyers representing the plaintiff did not immediately respond to requests for comments.
Altria has requested Orrick to halt a class-action lawsuit seeking refunds on behalf of all Juul buyers nationwide, while Altria appeals the judge's ruling in another motion on Wednesday. The class-action lawsuit is part of Orrick's larger-scale class-action lawsuit.
The company stated that it may face a heavy burden, which could include millions of people, if it continues to discover content related to the course. The company also stated that the US Ninth Circuit Court of Appeals has agreed to hear the appeal on certification before the final verdict, indicating that Altria has substantial evidence and the right to defer the trial.
In addition to a major settlement regarding allegations of widespread trademark infringement in September, Juul also agreed to pay $439 million to settle claims made by 34 states and territories in the United States concerning its marketing practices. As part of the settlement, the company did not admit to any wrongdoing and stated that it has taken measures to prevent the sale of its products to underage buyers.
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