Juul Announces Settlement Of Over 5,000 Lawsuits, Resolving Much Of Legal Uncertainty - Altria Group (NYS

Partly owned by Altria Group Inc (NYSE:MO), Juul Labs reached settlements with about 10,000 plaintiffs covering more than 5,000 cases in California. Juul did not disclose the settlement amount.
The company has obtained equity investment to fund it, a spokesperson told Reuters in a statement.
Juul had agreed to pay $438.5 million in September to settle claims by 34 U.S. states and territories.
In November, Juul secured investment from top-notch investors to stave off bankruptcy.
Juul plans to lay off about 400 people and reduce its operating budget by 30% to 40%.
The company's e-cigarettes were briefly banned in the U.S. in June after the FDA concluded that it had failed to show that the sale of its products would be appropriate for public health.
But following an appeal, the agency agreed to hold off on the ban and agreed to an additional review of Juul's marketing application.
The uncertainty around Juul's ability to keep its products on the market made raising money to cover legal liabilities challenging, thus pushing it to the brink of bankruptcy.
Wall Street Journal citing Juul's CEO's letter, said the settlement "addresses the vast majority of outstanding litigation facing our company."
Price Action: MO shares closed at $46.34 on Tuesday.
Photo via Wikimedia Commons

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