Juul To Settle Youth-Vaping Lawsuits With Payment Of $1.2B

  • Juul Labs Inc, backed by Altria Group MO, will pay $1.2 billion to resolve about 10,000 lawsuits alleging the e-cigarette maker was a major cause of a U.S. youth-vaping epidemic.
  • The accord was announced on Tuesday, but an amount wasn’t disclosed. It is yet to be finalized, Bloomberg reported.
  • The deal aims to resolve all personal injury, class-action, and school-district claims against Juul gathered before a judge in San Francisco.
  • Wednesday, Juul Labs reached settlements with about 10,000 plaintiffs covering more than 5,000 cases in California. The company has obtained equity investment to fund it.
  • Juul had agreed to pay $438.5 million in September to settle claims by 34 U.S. states and territories.
  • Some investors have invested in Juul Labs Inc to stave off the proposed bankruptcy it had been preparing amid a dispute with the FDA over whether its products can remain on the U.S. market.
  • Price Action: MO shares are down 0.28% at $46.73 on the last check Friday.
  • Photo via Wikimedia Commons
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