Juul to Pay $1.2 Billion Fine Over Role in Rise of Youth-Vaping

Juul Labs will pay $1.2 billion to settle roughly 10,000 lawsuits claiming the e-cigarette maker is a major contributor to the youth-vaping epidemic in the U.S., according to report by Bloomberg.

The pre-trial settlement was announced Tuesday and aims to resolve all personal-injury, class-action and school-district claims against Juul gathered before a federal judge in San Francisco, the report continued. 

“These settlements represent a major step toward strengthening Juul Labs’ operations and securing the company’s path forward to fulfill its mission to transition adult smokers away from combustible cigarettes while combating underage use,” JUUL said in a statement released Tuesday.

Shopkeeper demonstrates smoking a Juul brand vaping pen to customers at a Juul shop in Jakarta, Indonesia, Dec. 30, 2019. (Reutere/Ajeng Dinar Ulfiana/File Photo / Reuters Photos)

JUUL SETTLES OVER 5,000 VAPING LAWSUITS, SETTLEMENT NOT DISCLOSED

Over the past year, Juul Labs also settled with 37 states and territories, while continuing in ongoing discussions with stakeholders to resolve remaining litigation, according to the announcement. 

The case is being handled at the U.S. District Court, Northern District of California (San Francisco).

Last month, JUUL secured an investment of undisclosed size from some of its early investors that will keep the e-cigarette maker in business, the company said, adding that it will also undertake job cuts as part of a reorganization.

JUUL said the investment would help run business operations, while it goes ahead with its administrative appeal of the U.S. Food and Drug Administration’s marketing denial order related to its e-cigarettes.

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Juul’s e-cigarettes were briefly banned in the U.S. in late June after the FDA concluded that the company had failed to show that the sale of its products would be appropriate for public health. But following an appeal, the health regulator put the ban on hold and agreed to an additional review of Juul’s marketing application.

In July, the company said it was in the early stages of exploring options including financing alternatives, as it had to deal with lawsuits related to marketing of its e-cigarettes.

Reuters contributed to this report.