Juul Agrees to Pay $439 Million Settlement with US States

Sep.07.2022
Juul Agrees to Pay $439 Million Settlement with US States
Juul to pay at least $439 million to settle charges of selling to minors in over 30 U.S. states.

According to a report from the Chinese Wall Street Journal website, e-cigarette giant Juul has agreed to pay at least $439 million to settle with over 30 states in the U.S. This is the latest move from the troubled e-cigarette company to address accusations of selling to underage users.


According to reports, on Tuesday, Connecticut Attorney General William Tong announced during a press conference that Juul has agreed to a settlement that prohibits them from depicting those under the age of 35 in their marketing, product placements in movies and television, billboard advertisements, and social media promotions. They are also prohibited from selling their products and sponsoring educational programs in schools. The settlement includes 33 states and Puerto Rico.


The report stated that Juul voluntarily ceased these marketing and sales practices. Tong stated that the total settlement amount may increase, depending on the timing of Juul's payment.


The global regulation of the electronic cigarette industry has become increasingly strict, leading to a significant decrease in the valuation of Juul.


In late July, Reuters reported that the US tobacco giant Altria further reduced its stake in the electronic cigarette company Juul, lowering its valuation to $450 million.


Public reports indicate that at the end of 2018, Altria purchased a 35% stake in Juul for $12.8 billion, catapulting Juul's valuation to $38 billion. Additionally, Juul rewarded over 1,500 employees with a $2 billion bonus pool, resulting in an average year-end bonus of $1.3 million per person.


Based on the aforementioned data calculation, in approximately three and a half years, Juul's estimated valuation has decreased by 96.48%.


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