NYC Reaches Settlement with E-Cigarette Distributors in Flavored Vape Crackdown

Key Points

• Defendants: Star Zone Inc. and Kayla Wholesale Inc.
• Settlement: Permanent ban on flavored vape sales or deliveries in NYC.
• Penalty: $1,000 fine per prohibited item for future violations.
• Judge: U.S. District Judge Gregory H. Woods III.
• Broader litigation against 10 companies and two individuals is ongoing.

2Firsts, November 25, 2025 — According to Law360，New York City has settled with two e-cigarette wholesalers accused of illegally selling flavored vaping products within the city. The agreements, approved by U.S. District Judge Gregory H. Woods III, mark the latest development in a broader enforcement campaign targeting the sale of flavored e-cigarettes across the five boroughs.

The city originally filed suit against several distributors and retailers, alleging that they created a public health crisis and nuisance by selling flavored vapes in violation of state and federal law. As of Wednesday, Star Zone Inc. and Kayla Wholesale Inc. have agreed to end the claims against them through consent decrees.

Under the agreements, both companies are permanently prohibited from engaging in any transaction involving the sale or delivery of flavored e-cigarettes, e-liquids, or vapor products into New York City. The injunction extends to all employees, agents, and affiliated parties, barring them from deriving revenue from such sales.

The orders also stipulate penalties for future violations. If the city finds evidence of a breach, the companies will be fined $1,000 per prohibited item and must pay the city’s attorney fees and enforcement costs. The firms have also waived key legal defenses such as statute of limitations and personal jurisdiction in potential future actions.

The settlement amounts remain undisclosed. However, the case — City of New York v. EnviroMD Group LLC et al. — continues against the remaining non-settling defendants, which include eight companies and two individuals.

Judge Woods previously ruled in July that New York City is authorized to bring claims under the Prevent All Cigarette Trafficking Act (PACT Act), noting that the city imposes excise and sales taxes on nicotine products. He clarified that holding a state license does not exempt companies from enforcement when illegal sales occur.

Counsel for the defendants and city officials declined to comment on the settlements.

Image source: Law360