Juul and Altria settlement payments begin as some users confirm payments received

The 2022 settlement agreement between e-cigarette company Juul and tobacco company Altria has begun to be paid out, with users on platforms such as Reddit and X claiming to have already received thousands of dollars in compensation, according to a 22 October report from Forbes.

The settlement amount for this case is $3 billion, to be paid jointly by Juul and Altria. The lawsuit alleged that consumers paid inflated prices for e-cigarettes, that Juul failed to accurately disclose the addictive and safety risks of its products, and that it engaged in illegal marketing to minors.

The payouts were approved earlier this month, according to the r/juul subreddit. Users have reported receiving amounts ranging from a few hundred dollars to over $9,000. Some X users have shared screenshots of their payments, while others are disappointed that they were not included in the settlement list. The settlement agreement includes consumers who purchased Juul products before 7 December 2022. Juul did not admit any wrongdoing in the settlement, and Altria has denied the allegations against it.

The amount of compensation is influenced by several factors, including the amount the claimant spent on Juul products, the time period of the purchase, and the age at the time of the purchase. Obviously, users who spent more during the qualifying period will receive more compensation.

The class action stems from more than 8,000 lawsuits filed against Juul by municipalities, school districts, indigenous tribes and individuals. In 2019, Juul stopped advertising in the US market and discontinued most of its flavoured products due to legal disputes and government sanctions.

Following a multi-state investigation into its marketing practices, the company reached a settlement agreement for nearly $4.4 billion, followed by another agreement for $3 billion. In 2018, Altria had invested nearly $13 billion in Juul, but pulled out of the investment last year and invested in another competing startup. Juul avoided bankruptcy through cost-cutting, massive layoffs and support from wealthy investors.