Before the opening bell on Wednesday, shares of Altria (MO) rose 0.29% to $44.70 in pre-market trading on Wall Street.
On Tuesday local time, electronic cigarette manufacturer Juul Labs agreed to a $438.5 million cross-state settlement, ending a two-year bipartisan investigation into their marketing and sales practices that negatively impacted youth.
The Juul e-cigarette once held a market share of 70% in the US and was especially popular among American high school students. The trend of underage e-cigarette use caught the attention of the Food and Drug Administration (FDA), prompting Juul to adjust its marketing strategy and discontinue the sale of fruit-flavored e-cigarettes in an effort to appease regulators. However, despite these efforts, Juul was ultimately unable to convince the FDA. In June, it was reported that the FDA planned to reject Juul’s application to continue selling e-cigarettes in the US market.
Tobacco giant Altria Group owns 35% of Juul and has seen a continuous decline in its stock price as a result of Juul's impact.
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