Juul Labs settles $438.5 million lawsuit with U.S. states.

Sep.07.2022
Juul Labs settles $438.5 million lawsuit with U.S. states.
Juul Labs agrees to a $438.5 million settlement with 34 US states and territories over accusations of marketing to minors.

Recently, e-cigarette manufacturer Juul Labs agreed to pay a settlement of $438.5 million (approximately RMB 3.039 billion) to resolve lawsuits raised by 34 states and regions in the United States. These lawsuits allege that Juul underestimated the risk of its products and targeted underage customers.


On Tuesday, Connecticut Attorney General William Tong announced a deal representing several states and Puerto Rico. Puerto Rico joined the group in 2020 to investigate Juul's early marketing practices and claimed its technology as a safe and beneficial alternative to smoking.


The settlement resolved one of the major legal threats facing the company that was in crisis. However, the company still faces nine separate lawsuits from other states. In addition, Juul is also facing hundreds of personal lawsuits filed by teenagers and others who claim they were addicted to the company's electronic cigarette products.


According to a statement, a national investigation has found that Juul marketed their e-cigarettes to underage teenagers through sponsoring parties, giving away product samples and advertising, as well as using social media posts featuring young models.


In this settlement, we have obtained billions of dollars to help reduce the use of nicotine, and have forced Juul to accept a series of strict prohibitions to end adolescent marketing and combat underage sales," Tong said in a press release.


A total of $438.5 million will be paid over a period of six to ten years. Tong stated that at least $16 million of the funds paid by Connecticut will be dedicated towards prevention and education efforts. Juul had previously settled lawsuits in Arizona, Louisiana, North Carolina, and Washington.


Most of the restrictions imposed by the Tuesday settlement will not affect Juul's operations, as the company had ceased the use of parties, giveaways, and other promotional activities several years ago, when it came under scrutiny.


Since the launch of Juul in 2015, there has been a significant increase in the number of young people using e-cigarettes, prompting the US Food and Drug Administration to declare it an "epidemic" among underage users. Health experts warn that this unprecedented growth could lead to a generation of young people becoming addicted to nicotine.


Since 2019, Juul has mostly been in retreat, giving up all U.S. advertising and removing its fruit and candy flavors from store shelves.


The biggest blow occurred earlier this summer when the FDA started banning all Juul e-cigarettes from the market. Juul challenged this decision in court, prompting the FDA to conduct a scientific review of the company's technology.


The FDA's review is part of a comprehensive investigation into the multi-billion dollar electronic cigarette industry, following years of regulatory delays. The agency has authorized some e-cigarettes for adult smokers looking for less harmful alternatives.


Although Juul initially focused its marketing on young urban consumers, the company has since shifted to positioning its product as a nicotine replacement for traditional cigarette users.


As part of a settlement, Juul has agreed to avoid a series of marketing tactics. This includes not using cartoons, paying influential social media users, advertising on billboards and public transportation, and placing ads on any channel with less than 85% adult viewership.


Statement: 1. This article's content is compiled from third-party information sources and is only intended for industry communication and learning purposes. 2. This article does not represent the views of 2FIRSTS, and 2FIRSTS cannot confirm the truthfulness and accuracy of the article's content. The compilation of this article is only for industry communication and research purposes. 3. Due to limitations in the compilation process, the article's expressions may not entirely match the original text, so please refer to the original text for accuracy. 4. Regarding any domestic, Hong Kong, Macau, Taiwan, or international statements and positions, 2FIRSTS is fully aligned with the Chinese government. 5. The copyright for the compiled information belongs to the original media and author. If there is any infringement, please request to have the content removed.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Ispire Q4 Revenue Rebounds 33% but Full-Year Sales Still Fall 25% as FY2027 Focus Shifts to Malaysia Manufacturing, ODM, Nicotine Pouches and Age Verification
Ispire Q4 Revenue Rebounds 33% but Full-Year Sales Still Fall 25% as FY2027 Focus Shifts to Malaysia Manufacturing, ODM, Nicotine Pouches and Age Verification
Ispire Technology reported FY2026 revenue of about $96 million, down 24.7% year over year, as U.S. cannabis-vapor hardware and European e-cigarette sales declined by $17.4 million and $12.7 million, respectively. Fourth-quarter revenue rose 32.5% to $26.7 million, while quarterly gross margin fell to 6.3%. For FY2027, the company is prioritizing Malaysia manufacturing and vapor ODM while continuing to develop nicotine pouches, IKE Tech age-verification technology and G-Mesh licensing. Ispire has not separately disclosed the revenue or profit contribution of those newer businesses.
Regulations
Sep.17 by 2Firsts Perspectives
Kelly White Bets on Female Consumers as Nicotine Pouch Competition Intensifies | 2Firsts Interview
Kelly White Bets on Female Consumers as Nicotine Pouch Competition Intensifies | 2Firsts Interview
Swedish nicotine pouch brand Kelly White is building its strategy around adult female consumers. Founder and CEO Sophia Wilsby told 2Firsts that women accounted for around 70% of the brand’s repeat customers on HAYPP in Sweden in 2025. The interview explores female consumer segmentation, product and design differentiation, gender stereotypes, packaging regulation, and how independent brands can compete with global players such as ZYN and VELO while considering funding, partnerships and future ownership options.
Business
Sep.24
FDA Appoints Former Tobacco Enforcement Deputy Jessica Zeller as Director as Agency Weighs PMTA Framework Changes
FDA Appoints Former Tobacco Enforcement Deputy Jessica Zeller as Director as Agency Weighs PMTA Framework Changes
The U.S. Food and Drug Administration (FDA) has named Jessica Zeller director of the Center for Tobacco Products' (CTP) Office of Compliance and Enforcement (OCE), effective November 1, 2026. Zeller, the office's inaugural deputy director, returns from medical device manufacturer Edwards Lifesciences with more than 20 years of regulatory and legal experience. The appointment follows CTP leadership changes and adjustments to tobacco regulation. Bret Koplow became permanent CTP director in September; the FDA revised enforcement priorities for unauthorized e-cigarettes and nicotine pouches in May and announced faster PMTA review procedures. On September 28, the agency said it would evaluate changes to the existing PMTA regulatory framework, including potential rulemaking to replace it.
FDA
Oct.20 by 2Firsts Perspectives
IKE Tech Launches IKE 2.0 Compliance Platform for Nicotine Products
IKE Tech Launches IKE 2.0 Compliance Platform for Nicotine Products
IKE Tech launched IKE 2.0 on September 28, initially targeting nicotine products with a platform that combines user identity verification, product authentication, configurable policy controls and data analytics. Products can be authenticated through direct device integration or NFC smart tags. IKE Tech was formed with participation from Ispire's Aspire North America, Berify and Chemular, with Ispire currently holding a 40% interest. Its age-verification component PMTA was accepted by the FDA in 2025 and remains under review. The company did not disclose customer names, commercial deployment volumes, pricing or revenue tied to IKE 2.0.
News
Sep.29 by 2Firsts Perspectives
Charlie’s Bets on Age-Gating and 678 PMTA Assets as U.S. Vape Enforcement Landscape Shifts
Charlie’s Bets on Age-Gating and 678 PMTA Assets as U.S. Vape Enforcement Landscape Shifts
Charlie’s Holdings said in its latest shareholder letter that it is moving to commercialize PACHA products and monetize its PMTA assets as the FDA changes enforcement priorities for unauthorized ENDS products. Thirty PACHA SKUs were previously tentatively identified for a proposed public list of products that the FDA generally does not intend to prioritize for enforcement. Charlie’s is also preparing test-market sales of age-gated flavored disposables and says it currently holds 678 PMTA-related product assets while seeking additional strategic transactions and partnerships.
Sep.11
Italian Financial Police Seize 4.3 Million E-Cigarettes and Smoking Accessories; 28 Reported to Judicial Authorities Across Operations
Italian Financial Police Seize 4.3 Million E-Cigarettes and Smoking Accessories; 28 Reported to Judicial Authorities Across Operations
Italy's Guardia di Finanza announced on October 28 that officers in Latina province had seized approximately 4.3 million e-cigarettes and smoking accessories at an unauthorized warehouse in an operation involving restrictions on the possession and sale of tobacco-related products. Another 300,000 suspected counterfeit or unsafe items were confiscated during separate inspections, bringing total seizures across the operations to more than 4.6 million products. Twenty-eight people were reported to judicial authorities over suspected smuggling and counterfeiting offenses. Officials did not disclose separate vape quantities, the value of the merchandise or alleged violations associated with individual brands.
Enforcement
Oct.29