Dismissal of NJOY Lawsuit Against Disposable Manufacturers in California

According to a report by Vaping360 on January 23rd, the lawsuit filed by NJOY, a subsidiary of the American tobacco company Achia, against dozens of disposable e-cigarette manufacturers, distributors, and retailers was dismissed by a federal court in California. However, the court did not dismiss the lawsuit against iMiracle, the manufacturer of ELFBAR.

The lawsuit was filed in October of last year, accusing these companies of selling illegal products in California and the United States. It seeks a nationwide injunction to prevent future imports and sales of these products and demands compensatory and punitive damages to be awarded to NJOY.

The accused companies include Breeze, ELFBAR, Esco Bar, Flum, Juice Box, Lava Plus, Loon, Lost Mary, Mr. Fog, and Puff Bar, among others. These brands collectively constitute a significant portion of the disposable e-cigarette market in the United States.

Federal Judge Terry J. Hatter Jr., of the Central District of California, signed a dismissal order on January 18. The court ruled that the defendants were erroneously included in the lawsuit as they were not involved in the same transaction, event, or series of transactions or events. Consequently, Judge Hatter dismissed all parties except for the first defendant, iMiracle, from the litigation.

According to reports, NJOY was once a pioneer in the independent e-cigarette industry, but it is now a subsidiary of Ochsia, the manufacturer of Marlboro cigarettes in the United States. Last year, this tobacco company acquired NJOY for a price of $2.75 billion, after previously giving up its 35% stake in Juul Labs. Currently, NJOY's two e-cigarette devices are among the six devices authorized by the U.S. Food and Drug Administration (FDA).

The judge made these rulings in a manner that "does not harm the plaintiff's rights," which means that NJOY can refile the lawsuits against the dismissed defendants, possibly as separate or related groups. The court also dismissed NJOY's allegations of unfair competition and rejected its motion to impose a preliminary injunction on the defendants' sales and distribution.

In the case of the Hong Kong-based ELFBAR manufacturer, iMiracle, the court has rejected NJOY's request to serve legal documents via email, stating that there is an established international procedure (the Hague Convention) for serving legal notices to foreign defendants. As a result, NJOY's lawsuit against iMiracle remains valid, and iMiracle will be unable to proceed with the litigation until formal notification is received from the court.