The Most Recent Information Concerning Juul's $440 Million Settlement To U.S. States

Market
Sep.11.2022
On September 7, 2022, a court settlement was reached: Juul would pay $438.5 million to 33 U.S. states and Puerto Rico.

In 2020, 33 U.S. states and Puerto Rico joined forces to sue Juul for damages. The case is being brought by Texas, Oregon, and Connecticut. Alabama, Arkansas, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Maryland, Maine, Mississippi, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, Nevada, Ohio, Oklahoma, Puerto Rico, South Carolina, South Dakota, Tennessee, Utah, Virginia, Vermont, Wisconsin, and Wyoming all contributed to the investigation. 

 

According to Connecticut Attorney General William Towne, "Juul markets e-cigarette products to minors, confuses youth with flavors, has an insufficient age verification process to screen out youth, and is suspected of misrepresenting the nicotine content and addictiveness of its products to consumers." 

 

The Most Recent Information Concerning Juul's $440 Million Settlement To U.S. States

 

On September 6, 2022, Juul will pay $438.5 million (roughly $3.039 billion) to 33 U.S. states and Puerto Rico as part of the Act's court settlement. As part of the court settlement, each state will get a separate sum. Texas will receive $42.8 million, Connecticut will receive $16.2 million, Oregon will receive $18.8 million, Hawaii will receive $7 million, and South Dakota will receive $6.18 million. Juul will pay $438,500,000 over six to ten years. If the last payment is prolonged, it might reach $476,6 million. 

 

In addition, the agreement prohibits Juul from engaging in:

Youth advertising 

Funding academic programs 

Ads not utilizing models under 35 (or people who look like they are 35) 

Comic book positioning 

Paid product placement 

Selling electronic cigarettes with flavors that are not FDA-approved 

Permitting kids to access websites without age verification.

Advertising Terms for non-FDA-approved products 

False assertions about the nicotine content 

Sponsorship and naming rights 

No advertising is allowed in public areas (public transportation, social media) 

No complimentary samples may be sent 

The states are presently finalizing settlement agreements, with completion anticipated within one month.

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