U.S. e-cigarette Juul settles 5,000 lawsuits

JUUL

Juul's e-cigarette products = Reuters

[New York = Hiroko Nishimura] U.S. e-cigarette maker Jules Labs has announced that it has settled 5,000 lawsuits filed by plaintiffs from multiple states, municipalities and consumers.Business practices such as promotions focused on young people were accused of contributing to the epidemic of e-cigarette use among minors.In order to continue business, the company explained that it will continue to discuss the remaining lawsuits.

Details of the agreement, including the amount of the settlement money, have not been disclosed.“We have already secured the necessary capital,” Joule said of its solvency.

In recent years in the United States, minorselectronic cigaretteThe prevalence of its use has become a social problem.According to a recent survey by the US Centers for Disease Control and Prevention (CDC) and the US Food and Drug Administration (FDA), about 14% of US high school students said they had ever smoked an e-cigarette between January and May 2022. .

Joule iselectronic cigaretteAt the beginning of its launch, the company expanded its lineup of flavored products such as desserts and fruits, and rapidly expanded sales through sales promotions targeting young people.Since then, however, the company has faced a spate of lawsuits across the United States, alleging that its promotional methods and business practices led to the spread of smoking among minors.In 2021, he agreed to pay a settlement of $40 million (about 5.5 billion yen) with the state of North Carolina.In September 2022, it agreed to pay a total of $438.5 million in settlement payments with 33 states and Puerto Rico.

FDAbanned the sale of Juul's e-cigarette products in the United States in June, citing safety concerns.Juul filed a lawsuit and the injunction was temporarily suspended, but the company's business continuity is becoming more uncertain.

 


Post time: Jan-09-2023