JUUL Labs, the company behind the popular rechargeable electronic cigarette, has agreed to pay a total of $300 million in a settlement with consumers who allege they were misled about the addictive nature and safety of using its product. This agreement comes as a result of a class action lawsuit that has put the company in the eye of the hurricane for its controversial marketing.
Altria Group, a supplier of tobacco products that presents itself as an alternative for adults who want to quit traditional cigarettes, has also agreed to pay an additional $45 million to settle the remaining claims. Although Altria has been accused of targeting its marketing to minors, the company strongly denies these allegations.
Accusations and Allegations of the Plaintiffs
The plaintiffs in this case argue that they would have paid less for JUUL products if they had been properly informed about the health risks associated with their use. The class-action lawsuit alleges that consumers were misled about the safety and addictiveness of JUUL’s e-cigarettes, which influenced their purchase decision.
Consumers who purchased JUUL products before December 7, 2022 are eligible to file claims. The final deadline for submitting a claim was February 5, 2024. Those customers who initially opted out of the lawsuit before the deadline can now rejoin and submit a form to benefit from the settlement.
Judicial Process and Decisions of the Court
The final approval hearing of the agreement was held on March 6, 2024. It is important to note that the court has not issued a ruling on whether JUUL violated any laws. However, the agreement represents a significant solution for those affected.
As of 2024, JUUL has faced more than 5,000 lawsuits nationwide, including both class actions and individual personal injury cases. This number reflects the magnitude of the impact and the concerns generated by their products.
Regulatory Context and FDA Decisions
Recently, after almost two years of prohibition, the Food and Drug Administration (FDA) lifted the restriction on JUUL products. The initial ban was based on concerns that JUUL had contributed to the increase in e-cigarette use among teenagers. The decision to lift the ban marks a turning point in the regulation of these products.
The case known as “In Re JUUL Labs, Inc. Products liability litigation, sales and marketing practices” (Case No.: 19-md-02913-WHO) was developed in the Northern District of California. In September 2023, Judge William J. Orrick of the United States District Court granted final approval of a class action settlement for $255 million, related to the manufacturing and marketing practices of JUUL Labs.
This agreement provides compensation to consumers who purchased JUUL products before December 6, 2022, both online and in physical stores. The case, initiated in 2018, was consolidated into a Multidistrict Litigation (MDL) in the Northern District of California. After years of litigation, including numerous motions to dismiss, the filing of millions of pages of documents and more than 100 depositions, the court certified four classes and the case advanced to mediation. Eventually, Altria agreed to contribute an additional $45 million to a common fund for the plaintiffs.
Comments of the Tribunal
Judge Orrick highlighted the skill and quality of the work of the lawyers representing the plaintiffs: “The skill of the lawyers representing the interests of the group (the co-directors and the members of the PSC) and the quality of their work have been excellent.” This statement underscores the complexity and effort involved in this massive litigation.
