Wake County Scores $6.2 Million Victory against Juul
Following several similar settlements, Juul has agreed to pay the Wake County School District $6.2 million to settle a lawsuit the district brought against the e-cigarette giant last year. North Carolina was the first state to bring litigation against the company, which opened the floodgates for other attorney’s generals, school districts, and public health groups to take similar actions against Juul.
The settlement with Wake County comes on the heels of other high-profile payments. The company agreed to settle with six other states for an estimated $462 million, the highest amount it has yet to pay for its legal troubles. But what does this mean for the company and the Juul? Keep reading to find out more.
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Why Juul Settled
This settlement is one more defeat for Juul following a series of legal losses. The company is in litigation with over 10,000 different plaintiffs in 5000 other cases around the US and has decided to settle most cases rather than face trial. The $6.2 million settlement is a drop compared to the millions the company has already paid and is expected to pay in its other ongoing lawsuits.
Wake schools announces $6.2M settlement with JUUL over teen vaping https://t.co/FLbjHEccFR
— Ann Staples (@AnnStaples) April 26, 2023
The company also has legal troubles with the FDA, which refused to approve its premarket tobacco application, essentially banning Juul from being sold in the US (Juul applied for a stay of the FDA’s decision, which was granted while an appeals court considered its appeal). Given its overwhelming legal problems, they has chosen to pay out settlements rather than spend even more going to trial.
Juul Under Fire
The company has faced unending public scorn and scrutiny ever since it was blamed for the skyrocketing rise of vaping among young people. Its critics accused the company of targeting minors through its advertising, which appeared in magazines, online, and social media. But the campaigns went even further, with Juul sales representatives giving presentations in high schools pitching Juul as a harmless, cool alternative to cigarettes.
School districts were among the first to take action against Juul. Thanks to the device’s tiny profile and buttonless design, teachers nationwide have witnessed students vaping in hallways, bathrooms, and even in class. The rise in vaping has alarmed parents, teachers, and public health authorities, who warn that the high nicotine concentration can be harmful, especially to developing brains.
School Districts Take Action
State and local governments, parents and their children, and state’s attorney generals have taken action against Juul in some way, either in class-action lawsuits or civil litigation. School districts form a large part of the many lawsuits the company faces.
This is a great result from a class action lawsuit through which the Wake County School Board helped hold Juul accountable for targeting young people in the wake of @NCAGO’s landmark settlement against the e-cig co. We must continue fighting this public health crisis for kids. https://t.co/0HL1KHw928
— Tim Longest (@timlongest) April 26, 2023
Juul also plans to settle with another 1500 different school districts for $1.2 billion in a multi-party settlement in the upcoming weeks. All these settlements will eventually fund education programs to raise awareness about the dangers of vaping and help young people already addicted to nicotine get help.
H2 – Closing Thoughts
While these problems seem never-ending for Juul, it is still in talks to sell its intellectual property to another tobacco company. Still, it is more likely the company will file for bankruptcy to protect itself from its numerous creditors. The Juul is still sold worldwide in Europe and Asia. Still, Altira, the tobacco company that bought 35% of the company only five years ago, recently divested its shares, so it continues to be on shaky ground.