Category: Litigation

  • Juul Labs, Altria Vape Suit in Alaska Ends in Mistrial

    Juul Labs, Altria Vape Suit in Alaska Ends in Mistrial

    Credit: Wirestock

    A mistrial was ruled last week in a lawsuit filed by Alaska against Juul Labs, Inc. and the Altria Group, Inc., for what the state alleged was the company’s role in causing an increased use of e-cigarettes by youth.

    In a statement, Alaska Attorney General Treg Taylor said that his office was “disappointed” to see the case end in a mistrial due to a procedural error.

    “This does not reflect the merits of the case,” Taylor said. “We are still evaluating our options, including pursuing another trial.”

    In a follow-up question, Alaska’s News Source asked the State’s Department of Law to elaborate on the details of the procedural error, asking specifically if it was a matter of jury tampering.

    The Attorney General responded in a statement by saying:

    “The Attorney General’s office appreciates and thanks the members of the jury who devoted nearly seven weeks to carefully considering the evidence in this case. While the case ended in a mistrial for procedural reasons, the facts have not changed,” Taylor said. “Youth vaping continues to present a grave threat to the health of our kids. Companies that design and market products that are harmful to our children will be held to account. That was true before this trial began, and it remains true today.”

    In a statement from Juul Labs, External Affairs Vice President Stefanie Miller accused Alaska of having one of the highest smoking rates in the country while it continues to attack an “American company” that provides alternatives to combustible cigarettes.

    “We are hopeful that the hard work of the court and the jury will be taken into consideration before more of the State’s resources are devoted to matters almost 10 years old and, instead, will be directed to address the true threat to Alaskans: the flood of illegal and untested Chinese vaping products that target Alaska’s youth,” the statement said.

  • Rhode Island Shop Owners Sue Over Flavor Ban

    Rhode Island Shop Owners Sue Over Flavor Ban

    Rhode Island State House in Providence, Rhode Island. (Credit Design Pics)

    Two Rhode Island businesses are challenging the impending statewide ban preventing them from selling flavored vaping products.

    Vaporetti LLC, an East Providence vape shop, and Sunshine Vape LLC, which runs three stores in Providence, Warwick and South Kingstown, filed a lawsuit against the Rhode Island Department of Revenue, Division of Taxation and Department of Health last month in an attempt to block the statewide ban.

    The business owners are asking the court to stop the “unconstitutional” and “unlawful” ban from taking effect on Jan. 1, 2025, media reports. Gov. Dan McKee signed the statewide ban, which was included in his $14 million budget proposal for the next fiscal year, into law over the summer.

    In the lawsuit, the business owners warned that the ban would severely impact their bottom lines and force their inevitable closures. “Each [business] derives more than 70% of its annual sales revenue from flavored ENDS products,” the lawsuit explained. “The sale of flavored ENDS products is an integral part of [their businesses], and the viability of their businesses is directly related to their ability to sell these products.”

    If enforced, the ban “will prove fatal to these businesses because they cannot survive the loss of nearly three quarters of their revenue.” In the lawsuit, the business owners also stressed that the ban may do more harm than good.

  • Justices Skeptical of FDA’s Actions on Vapes

    Justices Skeptical of FDA’s Actions on Vapes

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    The hearing took just over an hour. Today, the United States Supreme Court heard oral arguments in FDA v. Wages and White Lion Investments, LLC, a pivotal case concerning the Food and Drug Administration’s rejection of applications to market flavored nicotine vaping devices.

    The case is about much more than saving the vaping industry; it is also a landmark case for regulatory accountability related to public health and consumer choice. A decision is expected by the end of the Supreme Court’s term in June.

    At issue is whether the FDA acted arbitrarily and capriciously when denying numerous premarket tobacco product applications (PMTA), as alleged by the manufacturers and affirmed by the U.S. Court of Appeals for the 5th Circuit, which accused the FDA of a “regulatory switcheroo”. 

    Elizabeth Hicks, US Affairs Analyst of the Consumer Choice Center, stated that the case underscores the need for “fairness and transparency” in regulatory processes. “The FDA’s blanket denials have placed enormous hurdles on firms providing harm-reduction alternatives, potentially decimating an industry that millions of adult consumers rely on to transition away from smoking traditional cigarettes,” she said.

    The court heard the FDA’s defense of the agency’s rejection of two companies’ premarket tobacco product applications (PMTAs) to sell flavored vape products that it has determined pose health risks for young consumers. The justices took up the FDA’s appeal filed after a lower court ruled that the agency had failed to follow proper legal procedures under federal law when it denied the applications to bring their nicotine-containing products to market.

    In January, the full slate of 5th Circuit judges ruled 10-6 that the FDA had been arbitrary and capricious, in violation of a federal law called the Administrative Procedure Act, by denying the applications without considering plans by the companies to prevent underage access and use.

    Associate Justice Clarence Thomas called the FDA guidance “a moving target” that shifted throughout the process. Also, Associate Justice Neil Gorsuch stated that applicants were not granted conditions for jury trials in administrative cases, as the court outlined in SEC v. Jarkesy. Gorsuch also wondered if the agency had failed to give applicants fair notice that the rules had changed.

    The court has a 6-3 conservative majority that is often skeptical of federal agency decision-making.

    Their lawyers argue that the FDA changed its standard for considering flavored vapes in the middle of the process without giving applicants adequate warning.

    Kavanaugh also seemed to have sympathy for the FDA’s case. He said it was clear from the outset what the FDA’s position on issuing denial orders was: a focus on the harm to young people that flavored vape products bring. He noted that under the Tobacco Control Act, the FDA has the power to regulate tobacco products, with a special focus on youth.

    If, after weighing the evidence, the FDA rejects an application, “It’s kind of the end of it, isn’t it?” Kavanaugh asked.

    Hicks said the FDA’s rejection of Triton and Vapetasia’s applications demonstrates a failure to balance or even understand public health priorities and opportunities provided by less harmful nicotine products.

    “While we all agree on the need to keep these products out of the hands of young people, denying adult smokers access to safer alternatives like flavored vaping devices could have dire consequences for harm-reduction efforts,” Hicks said in a press release. “Regulatory decisions should be evidence-based, not rooted in unachievable or shifting standards that are unreasonable to provide.”

     Justice Elena Kagan said that applicants know that the FDA believes that flavored vapes are especially appealing to children and that they would need to overcome that presumption in their PMTA submissions.

    “I mean, there’s just not a lot of mystery here about what FDA was doing. You might disagree with that, because you think that, in fact, the world of 40-year-olds really wants to do blueberry vaping, but you can’t say that FDA hasn’t told you all about what it’s thinking in this respect,” Kagan told the companies’ lawyer, Eric Heyer.

    Heyer told the justices that if his clients win the case, there could be a change in the FDA’s approach, citing comments Trump has made that he would “save vaping.”

    Just before the hearing began, Tony Abboud, executive director of the Vapor Technology Association. said the High Court has the opportunity to examine and critique the farcical “wild goose chase” manufacturers have been led on over the years due to the FDA’s illegal and bad faith actions.

    “While VTA eagerly awaits the SCOTUS decision, VTA knows that a favorable ruling will not fix the systemic and ideological failures at FDA. VTA will continue to work closely with the incoming Trump Administration, which can quickly and decisively end all current litigation – and all future litigation that will follow a SCOTUS decision favorable to industry – by implementing a new tobacco products standard which establishes clear scientific guidelines for the authorization of products and a real pathway to a broad and diverse U.S. vaping industry,” Abboud said. “Biden FDA’s illegal actions, which have deprived Americans of less harmful nicotine alternatives and are crushing an innovative industry, must be comprehensively addressed immediately through the bold and decisive leadership of President-elect Trump.” 

  • SCOTUS to Hear Triton Vaping Case Next Week

    SCOTUS to Hear Triton Vaping Case Next Week

    Credit: Renas Child

    In one week, the U.S. Supreme Court will hear the U.S. Food and Drug Administration’s defense of the agency’s rejection of two companies’ premarket tobacco product applications (PMTAs) to sell flavored vape products that it has determined pose health risks for young consumers.

    The live audio of the hearing can be found here.

    The justices took up the FDA’s appeal filed after a lower court ruled that the agency had failed to follow proper legal procedures under federal law when it denied the applications to bring their nicotine-containing products to market.

    The Supreme Court is due to hear the case in its next term, which begins in October, according to Reuters.

    Two e-cigarette liquid makers, Triton Distribution and Vapetasia LLC, filed FDA applications in 2020 for products with flavors such as sour grape, pink lemonade, and crème brulee and names such as “Jimmy The Juice Man Strawberry Astronaut” and “Suicide Bunny Bunny Season.”

    An FDA rule that took effect in 2016 deemed e-cigarettes to be tobacco products, like traditional cigarettes, subject to agency review under a 2009 federal law called the Tobacco Control Act. The rule said manufacturers of the products would need to apply for approval to continue selling them.

    The FDA rejected the applications by the two companies, along with more than one million other products, according to court records. The FDA has approved only 27 e-cigarette products, all tobacco or menthol flavored.

    Triton and Vapetasia in 2021 asked the New Orleans-based 5th U.S. Circuit Court of Appeals to review the FDA’s denial of their applications.

    In January, the full slate of 5th Circuit judges ruled 10-6 that the FDA had been arbitrary and capricious, in violation of a federal law called the Administrative Procedure Act, by denying the applications without considering plans by the companies to prevent underage access and use.

  • Consumer Files Suit for Alleged Overcharging for Zyn

    Consumer Files Suit for Alleged Overcharging for Zyn

    VV Archive Photo

    Swedish Match North America is being sued for allegedly overcharging U.S. customers for its popular tobacco-free Zyn nicotine pouches.

    The class action lawsuit, filed on Monday in federal court in Richmond, Virginia, alleges that the Philip Morris International subsidiary is violating federal and state antitrust laws concerning the market for modern oral nicotine pouches.

    The plaintiff, a resident of Florida, claimed that Swedish Match illegally gained monopoly power through various business practices aimed at eliminating rival Dryft from the market, Reuters reports.

    Swedish Match now has an estimated 80 percent of the market for nicotine pouches, which the company sells in different flavors and strengths for about $6 a tin, according to the lawsuit.

    In a statement, Philip Morris, which was not named as a defendant, said, “We believe the plaintiff’s claims are without merit, and we intend to vigorously defend against them.

    Marlboro maker Philip Morris, in 2022, acquired the Swedish tobacco and nicotine products company for $16 billion. Philip Morris has stated an ambition to move away from health-harming cigarettes.

    The consumer lawsuit seeks class action status for Zyn consumers and damages of more than $5 million.

  • Colorado CBD Company Settles Suit With State

    Colorado CBD Company Settles Suit With State

    Colorado US state flag with statue of lady justice, constitution and judge hammer on black drapery. Concept of judgement and punishment

    Bee’s Knees CBDs, based in Colorado, has reached a $225,000 settlement with the state attorney general after an investigation revealed that the company misrepresented its product offerings, falsely claimed partnerships with nonprofits, and failed to verify the ages of its customers.

    The fines could increase to $495,000 if the company fails to comply with the settlement’s terms, which include the initial $225,000 over a series of payments and the company’s pledge to “fully comply with state law” moving forward, Colorado AG Phil Weiser’s office said in a press release.

    Bee’s Knees sells industrial hemp-derived cannabinoid products both wholesale and on its website directly to consumers. While many of the company’s offerings include non-intoxicating products like CBD gummies and topicals, some of the products are infused with hemp-derived THC — and, while the website lists the products as being restricted to customers aged 21+, the products could previously be purchased without providing proof-of-age, the release said.

    Colorado Attorney General Phil Weiser, in a statement, said, “Colorado is committed to maintaining an effective system of overseeing the sale of legal cannabis products — one that keeps it out of the hands of kids, ensures safety standards, requires chain-of-custody tracking, and gives consumers important information about the products they buy, according to reports.

    “In this case, the company misrepresented to their customers the source and nature of their products and sold intoxicating products without verifying the age of customers. This settlement will hold them accountable for those violations of the law and will ensure compliance in the future.”

  • New York City Files Suit for Illegal Online Vape Sales

    New York City Files Suit for Illegal Online Vape Sales

    New York City Mayor Eric Adams and New York City Acting Corporation Counsel Muriel Goode-Trufant announced that the City of New York has filed a federal lawsuit today against a major distributor of disposable flavored e-cigarettes,

    The defendant – Price Point Distributors, Inc., based in Farmingdale, Long Island – is accused of distributing e-cigarettes with flavors such as snow cone, strawberry shortcake, and Hawaii Punch to retail stores and directly to consumers in New York City and around the country through online sales, violating nearly every applicable federal, New York state, and New York City law governing the sale of such products.

    The lawsuit seeks to block Price Point Distributors, Inc., from further sales of these illegal items, seeks both monetary damages and fines, and marks the latest effort by the Adams administration to curb illegal sales of flavored e-cigarettes, which are appealing and addictive, especially to teens, according to media reports.

    “Part of protecting public safety means protecting the health of New Yorkers, including our most vulnerable – our children, who are more susceptible to nicotine addiction, especially when products are flavored to make the taste less harsh,” said Adams. “Protecting young New Yorkers means stubbing out illegal vape and e-cigarette sales that target them.

    “Today’s lawsuit alleges that Price Point Distributors knew it was breaking laws by selling flavored cigarettes to New Yorkers, and even took measures to conceal these illegal sales from federal, state, and local authorities. This lawsuit, as well as our continued efforts to shut down illegal smoke shops, go hand-in-hand with the work our administration is doing to bring down overall crime in our city.”

  • Mexico: Top Court Strikes Down Vape Import Ban

    Mexico: Top Court Strikes Down Vape Import Ban

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    Mexico’s ban on imports of e-cigarettes and related products is unconstitutional, the nation’s top court ruled, reports Meganoticias.

    The First Chamber of the Supreme Court of Justice of the Nation determined that the prohibition imposes excessive restrictions on commercial freedom of Philip Morris Mexico.

    The ruling is limited to Philip Morris Mexico and does not affect similar products that could be brought to market in the future.

    It protects Philip Morris Mexico from future restrictions and sets a legal precedent that could influence future litigation. The judgment specifies that this protection will be maintained until the government amends its General Import and Export Taxation Act.

    According to the Mexican government, an estimated 938,000 teenagers have tried electronic nicotine delivery systems, and about 160,000 use them regularly

    Despite the import ban, vaping has spread rapidly. In 2023, there were an estimated 2.1 million e-cigarette users in Mexico, compared with 975,000 in 2019.

    The Philip Morris Mexico case stems from an October 2022 Supreme Court ruling that deemed some prohibitions on ENDS unconstitutional and allowed certain groups to apply  for permission to continue the import and sale of these products.

  • Alaska Begins Jury Trial Against Juul Labs, Altria

    Alaska Begins Jury Trial Against Juul Labs, Altria

    Credit: Mehaniq41

    A jury trial commenced last week for a lawsuit filed by the State of Alaska against Juul Labs, Inc. and Altria Group, Inc. The state alleges that these companies played a significant role in the rising use of e-cigarettes among young people.

    In a press release dated November 24, 2020, former acting Attorney General Ed Sniffen stated that the state alleges Juul Labs employed marketing strategies similar to those used by large tobacco companies but updated for the digital age. This included youth-oriented social media campaigns and the use of paid influencers.

    The suit further alleges that Altria then conspired with Juul Labs to maintain and expand the youth e-cigarette market JUUL had created, working to cover up Juul Labs’ youth marketing just as major tobacco companies tried to cover up their own youth-targeted marketing in the past, according to media reports.

    “According to the 2019 Alaska Youth Risk Behavior Survey, 45.8% of Alaska high school students have tried e-cigarettes, with 26.1% reporting e-cigarette use,” the press release states. “This is a significant increase from 2017, when 15.7% of Alaska high school students reported using e-cigarettes. Alaska’s Complaint alleges that this dramatic rise is a direct result of the marketing strategies used by JUUL and Altria to target teenagers and youth.”

    The state’s complaint alleges Juul Labs and Altria violated the law in four ways:

    • Creating a public nuisance under Alaska law;
    • Violating Alaska’s Unfair Trade Practices and Consumer Protection Act in marketing and promoting e-cigarettes to youth;
    • Negligently developing, marketing, and selling JUUL vaping products;
    • Conspiring to maintain and grow a market based on sales to youth.

    The lawsuit is seeking damages to fund public health efforts to address youth vaping as well as an abatement of what the state is calling a “public nuisance.”

    Alaska is far from the only state to file a suit against the e-cigarette giants; in 2021, Juul Labs agreed to pay $40 million to North Carolina in the first state lawsuit settlement.

  • Customers ‘Shocked’ by Juul Labs Lawsuit Payouts

    Customers ‘Shocked’ by Juul Labs Lawsuit Payouts

    VV Archive

    Howard Feinstein wasn’t expecting much when he submitted his information to a lawsuit against Juul Labs, which accused the vaping company of misleading customers about the addictiveness and safety of its products.

    Then, more than $3,000 hit his bank account.

    “I thought it was fake at first,” said the 55-year-old real estate agent, who lives in Washington state. “I was absolutely shocked.”

    According to media reports, the payment to Feinstein this week was one of more than 800,000 dollars that the company is making to former customers due to a more than $300 million court settlement that was finally approved earlier this year.

    Dena Sharp, the lead attorney on the case of the San Francisco law firm Girard & Sharp, said the payouts range from $15 to more than $10,000, with an average of about $240.

    Administrators of the settlement, which involved Juul and tobacco giant Altria, which previously held a sizable stake in the company, started mailing checks late last week. Electronic payments began on Monday.

    Sharp said more payments would be sent out over the next few days.

    “Please continue to be patient and give us a little bit of time to process these claims,” she said.

    More than 14 million people submitted claims to the court, of which only about 842,000 were officially validated.

    Sharp said the court followed a careful process to winnow the claims, looking for duplicates, signs of fraud, and proof of purchase.

    She said about a quarter of the recipients purchased directly from the company, making their eligibility easier to verify.

    The lawsuit alleged two things: that Juul customers paid more for the product than they would have had they been provided with accurate information about its addictiveness and safety and that the products were unlawfully marketed to minors.

    The court did not decide whether either firm violated any laws.

    In a statement, Juul Labs said it is “pleased to have resolved the vast majority of the company’s past legal issues and is focused on advancing our mission”, which it added included reducing the use of its products by underage users.

    Many people receiving payouts, like Feinstein, have been pleasantly surprised by the sums and have taken to social media to celebrate their haul.

    “The money couldn’t have come at a better time, so I’m really grateful that they’re following through,” Feinstein said, adding that he might use some of the money to pay down his credit card debt.