Juul Labs Reaches $24 Million Settlement With Chicago
Credit: Standap
A $23.8 million settlement has been reached between Juul Labs Inc and the City of Chicago over claims that the e-cigarette maker deceptively marketed its products and for selling vaping products to underage users, the Chicago mayor’s office said on Friday.
The vaping company is currently facing thousands of lawsuits filed across the United States over claims on its marketing practices and for contributing to rising tobacco use among youth, according to Reuters.
In the settlement, Chicago said Juul has denied and continues to deny any wrongdoing and liability in connection with the design, manufacture, production, advertisement, marketing, distribution, sale, use, and performance of its products.
According to the settlement, the company has agreed to pay the city $2.8 million within 30 days of the execution of the agreement.
Chicago would receive an additional $21 million payment later this year under the current schedule and may potentially receive up to $750,000 in additional, court-awarded payments, the Chicago mayor’s office said.
Altria Group Inc, which had a stake in Juul Labs valued at $12.8 billion in 2018, exchanged its investment in Juul, last valued at $250 million, for some of the vaping company’s heated tobacco intellectual property.
Altria Group then immediately announced it has entered into an agreement to acquire NJOY Holdings for approximately $2.75 billion in cash. The transaction terms include an additional $500 million in cash payments that are contingent upon regulatory outcomes with respect to certain NJOY products.