Juul Labs Agrees to Pay $1.7 Billion in Lawsuit Settlements

Dec.12.2022
Juul Labs Agrees to Pay $1.7 Billion in Lawsuit Settlements
Juul Labs agrees to pay $17 billion to settle over 5,000 lawsuits claiming their e-cigarettes are more addictive than advertised.

According to sources familiar with the matter, Juul Labs Inc. has agreed to pay $1.7 billion to settle over 5,000 lawsuits brought by school districts, local governments, and individuals who claim that their e-cigarettes are more addictive than advertised.


According to sources, Bloomberg has reported that Juul Labs has agreed to pay $1.2 billion to settle around 10,000 lawsuits against the e-cigarette manufacturer, which are the primary cause of the youth vaping epidemic in the United States.


According to a report from the San Francisco Examiner, this e-cigarette manufacturer faces over 8,000 lawsuits brought by Juul users, including individuals and families, school districts, municipalities, and Native American tribes. This week's settlement resolves a large portion of these cases, which have been consolidated in a California federal court pending trial of several lead cases.


The Wall Street Journal reported that on December 6, Juul Labs settled over 5,000 lawsuits involving over 10,000 individual plaintiffs. The financial terms of the settlement were not disclosed.


In a press release, Juul Labs announced that it has reached a settlement with the plaintiffs of the federal multi-district litigation (MDL) and related "Juul Labs Product Cases" (JCCP), which were consolidated in the Northern District of California court. Juul Labs did not disclose any monetary figures.


The company stated, "These settlements represent an important step in strengthening Juul Labs' operations and ensuring the path forward for the company to fulfill its mission of keeping adult smokers away from combustible cigarettes while combating underage use.


According to Juul Labs, the global resolution covers over 5,000 cases brought against Juul Labs, its executives, and directors by approximately 10,000 plaintiffs.


According to a press release, over the past year, Juul Labs has reached settlements with 37 states and jurisdictions, and is still in discussions with other major stakeholders to resolve remaining litigation.


According to media reports, the amount involved in this transaction concerns the consolidation of cases centered around Northern California, and is more than three times the settlement amount reported in other state and local cases involving Juul Labs to date.


This deal resolves much of the legal uncertainty that had put the company on the brink of bankruptcy.


On December 6th, Juul announced that it has secured an investment to pay for settlement fees. The company has been in negotiations with two early investors to fund a relief plan that includes legal liabilities.


Juul CEO KC Crosthwaite has stated that the settlement resolves the majority of outstanding lawsuits against the company, including two high-profile trials set to begin early next year and four categories of entities: personal injury plaintiffs, Juul consumers, government school districts, and Native American tribes. Several lawsuits brought by state attorneys general are still ongoing.


As a pioneer in the electronic cigarette industry, Juul Labs went from dominating the American e-cigarette market to struggling for survival in a relatively short period of time.


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