U.S. Federal Judge Rejects Flavored Vape Maker’s Appeal, Upholds New York City Enforcement

Key points:

·A federal judge in Manhattan has denied a motion to dismiss by eight e-cigarette wholesalers. 

·New York City has accused the defendants of violating federal, state, and local laws by illegally selling flavored e-cigarettes. 

·The court found the city's lawsuit to be valid and rejected the defendants' motion.

【2Firsts News Flash】According to a report from Law360 on July 15th, the city of New York has filed a lawsuit against companies selling flavored e-cigarettes, alleging that these companies have violated federal, state, and local laws by selling large quantities of flavored e-cigarettes in the city. On July 15, 2025, Manhattan federal judge Gregory H. Woods denied a request from eight e-cigarette wholesalers to dismiss the lawsuit.

In a 33-page ruling, Judge Woods determined that New York City officials exercised their authority when initiating law enforcement actions, and the city has justifiably claimed that multiple defendants were illegally selling e-cigarette products.

"The motion to dismiss by the defendants was rejected because the city claimed that each defendant who had their application dismissed had sent e-cigarettes to unlicensed buyers in New York State and sold flavored e-cigarettes in New York City, violating local ordinances."

The judgment stated.

The city of New York initially filed a lawsuit against these e-cigarette retailers in New York state court in April 2024. Two months later, the lawsuit was moved to federal court, and in August 2024, the city of New York filed its amended complaint in federal court.

New York City alleges that these e-cigarette retailers violated the citywide ban on flavored e-cigarettes, New York state laws prohibiting businesses from shipping e-cigarettes to stores without state permits, and the federal Prevent All Cigarette Trafficking (PACT) Act by remotely selling to unlicensed stores.

"The defendants named in this case have almost certainly violated every federal, state, and city law designed to regulate the marketing, distribution, and sale of flavored e-cigarettes."

New York City stated in its second amended complaint.

The city of New York further asserts that these businesses constitute a public nuisance under New York common law, a claim which the court found credible in its ruling on July 14th.

"The city has reasonably argued for public nuisance because it claims to have enough evidence to show that the defendants being sued supplied flavored e-cigarettes in New York City, exacerbating a public health crisis."

The ruling stated.

The parties whose applications were rejected include 8 out of the 12 defendants, who generally claim that New York City lacks the authority to enforce state and federal laws, and that the city has failed to reasonably assert that the defendants have violated any state or local laws.

The court found that these claims lack basis. Specifically, Judge Woods wrote that New York City has the right to sue under the PACT Act because it imposes excise and sales taxes on nicotine products, and just because the defendants hold operating permits does not mean that their illegal sales cannot be restricted through city enforcement actions.

"The defendants whose application was denied do not deny that there are addictive flavored e-cigarettes all over New York City, which poses a threat to public health. Instead, the defendants whose application was denied argue that the city has failed to reasonably claim that they have sold these products to businesses and individuals in New York, a claim that has been rejected by the court."

The court stated.

As of July 15, the defendant and representatives from the city of New York have not yet responded to requests for comments.