On Tuesday, Juul Labs agreed to a $438.5 million settlement across multiple states, concluding a two-year bipartisan investigation into the e-cigarette manufacturer's marketing and sales practices that targeted youth.
In a statement, Juul stated that the settlement agreement is "an important component of our ongoing commitment to addressing past issues. Recently, we provided scientific and evidentiary proof to the US Food and Drug Administration that its marketing denial order (MDO) regarding our products was flawed both substantively and procedurally, and should be revoked.
According to the office of the Texas Attorney General, the agreement also includes marketing restrictions for individuals under the age of 35, limitations on in-store and online displays and sales, as well as age verification requirements for all sales.
Texas Attorney General Ken Paxton stated, "My commitment to protecting consumers from deceptive business practices is unwavering, and any company that misleads Texans, especially our young people, will be held accountable for their actions.
The state of Texas will receive $42.8 million from a settlement. The Attorney General's office stated that the $438.5 million settlement will be paid out over a period of 5 to 10 years, but if Juul chooses to extend the payment schedule to the maximum timeframe, the settlement amount could reach $476.6 million.
In late 2018, cigarette manufacturer Altria, maker of Marlboro, acquired a 35% stake in Juul for approximately $13 billion. As of July of this year, these shares were estimated to be valued at $4.5 billion.
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