Juul reaches $14.5 million settlement in Arizona vaping suit

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E-cigarette giant Juul Labs Will pay $14.5 million to Arizona as part of a settlement for a lawsuit It alleged that it illegally targeted youth in its marketing.

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why it matters: The company faces more than 2,000 lawsuits related to its marketing practices, which include buying fruit-flavored Liquid Pods and advertising on youth websites such as Cartoon Network. Per Reuters, State and local governments have said this has fueled an epidemic among teenagers.

description: $12.5 million of the settlement will be allocated to anti-addiction programs, while the remaining $2 million will help cover litigation expenses and go to the General Consumer Protection Fund.

  • Although Juul has not admitted any wrongdoing, it the settlement is called “One more step in our ongoing effort to reset our company.”
  • “We will continue to work with federal and state stakeholders to advance a fully regulated, science-based marketplace for vapor products.”
  • “As part of that process, we will continue to support Tobacco 21 and enforcement against illegal and illegally marketed products, such as certain disposables, that threaten the ability to reduce the harm of alternative vaping products. Let’s put it,” the company said.

Noteworthy: In 2018, more than 3.6 million youth in the US, including 1 in 5 high school students and 1 in 20 middle school students, used e-cigarettes, According to the Centers for Disease Control and Prevention,

big picture: In 2018 Juul stopped selling popular flavors in its stores and shut down social media channels after facing pressure from regulators.

  • It agreed a $40 million settlement with North Carolina in June to settle a similar lawsuit.
  • The Food and Drug Administration is still weighing whether to ban Juul products in the US, although it has banned the sale of about 950,000 lesser-known e-cigarette products, ABC news report,
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