Category: Litigation

  • SwissX Warns Shops of Selling Patent Infringing Products

    SwissX Warns Shops of Selling Patent Infringing Products

    Swissx Labs sent a cease and desist letter to hundreds of companies today demanding they stop selling Juul and other companies that manufacturer patent infringing products within 30 days. The goal is to protect the public from dangerous unapproved uses of its inventor’s IP, according to a press release.

    Credit: Bill Oxford

    The cease and desist letter demands that stores and chains remove vape products made by Juul and others from their shelves or risk being included in the massive lawsuit already underway for patent infringement. SwissX says it is concerned about the integrity of its inventor’s patent, as well as the safety of the public who may be being put in danger by infringing products.

    When the suit is done it is expected the final penalty will top infamous cases on the level of the Enron scandal, the release states. Recipients of the cease and desist letter include 7-11, Speedway, Casey’s, Cumberland Farms, Quick Stop, AMPM, Wawa, ExtraMile and other roadside favorites. Also receiving the letter are major tobacco shop chains such as the 800+ store Smoker Friendly chain. They have 30 days to comply.

    “We don’t want innocent retailers to get swept up in this,” said Rudy Delarenta, senior vice president of sales and marketing for SwissX. “That’s why we’re giving them 30 days notice to pull Juul’s infringing products. But if they refuse, we’ll do what we have to do.”

  • South Carolina School District Not Joining Juul Lawsuit

    South Carolina School District Not Joining Juul Lawsuit

    South Carolina’s fifth-largest school district, Richland 2 school district will not be joining a class-action lawsuit against Juul Labs the board voted Tuesday. In October, Lexington 1, a neighboring school district, became the first school district in S.C. to join the Juul Labs class-action. It was later joined by Greenville School District in December.

    The lawsuit alleges Juul Labs engaged in deceptive marketing practices and marketed its product to minors. Juul Labs has said it has curbed advertising, is less harmful than alternatives and that its customer base is adults.

    Board member Amelia McKie made a motion to join the lawsuit, which saw support from district Superintendent Baron Davis, according to an article in The State.

    “Sometimes you take on an issue and lend your voice so others who don’t have a voice can have the strength to do so,” Davis said. “So we wanted to join the collective group of school districts that say ‘we believe vaping is wrong and we want to do something about it.’”

    The motion to join the suit was a 3-3 vote, meaning it fails. McKie, Cheryl Caution-Parker and Manning voted for joining the suit. Lashonda McFadden, Agostini and Elkins voted against joining the lawsuit. Board member Teresa Holmes was not present at the meeting because she was sick, board chair James Manning said. The board may revisit the issue at a later date.

    Board members Monica Elkins and Lindsay Agostini voted against joining the lawsuit because Richland 2 has no data to back up how many students in the district are using Juuls or vapes, they said.

    “Richland 2 is a data-driven school district,” Elkins said. “I can’t support something in the dark.”

  • Chicago Files Suit Against Vapes.com for Illegal Sales

    Chicago Files Suit Against Vapes.com for Illegal Sales

    The City of Chicago has filed a lawsuit against Equte LLC, parent to Vapes.com, for “marketing and selling flavored vaping products.” The company allegedly marketed its products to youth, alongside selling flavored products. Four months ago, the Chicago City Council banned the sale of flavored vaping products favored by teens, but exempting flavored tobacco products, including menthol cigarettes.

    Chicago skyline
    Credit Emily Ralph

    The latest in a string of city lawsuits against the e-cigarette industry follows an investigation by the Department of Business Affairs and Consumer Protection. It identified the two companies as having violated the flavored tobacco ban, according to the Chicago Sun Times.

    “E-cigarettes are unhealthy and addictive, and businesses deliberately target young people in the hope they’ll develop lifelong customers,” Mayor Lori Lightfoot was quoted as saying in a news release. “The City of Chicago’s message to vaping companies is clear: If you break the law, we will go after you, especially if you try to sell to our youth.”

    O’Shea originally championed a much stronger, citywide ban on all flavored tobacco products. He was forced to settle for less — a ban on “flavored liquid nicotine products” — after running into a buzz-saw of opposition from gas stations, convenience and tobacco stores. They accused O’Shea of kicking them when they’re down, with their businesses hurting during the pandemic.

    O’Shea could not be reached for comment. The press release quoted him as saying that this lawsuit “not only takes these companies to task, but sends a clear message to anyone who thinks they can push vaping products onto our kids and get away with it.”

  • ITG Brands sues Bloom for Use of Double ‘O’ Logo

    ITG Brands sues Bloom for Use of Double ‘O’ Logo

    The owner of the Kool cigarette brand sued the maker of Bloom cannabis e-cigarettes in Los Angeles federal court for allegedly infringing the brand’s trademark, according to Bloomberglaw.com.

    Bloom cannabis box
    Credit: Bloom

    Bloom’s logo uses interlocking “O” letters that confusingly resemble ITG Brands LLC’s famous Kool logo, according to ITG’s complaint. The suit was filed last week in the U.S. District Court for the Central District of California.

    ITG says Capna Intellectual, which owns the Bloom brand, has applied for federal trademarks covering Bloom for e-cigarettes and oral vaporizers. ITG says it sent Capna a cease-and-desist letter in December.

    The complaint says the Bloom marks are intended to trade off of Kool’s well-known branding.

  • SwissX Files Infringement Suit Against Juul Labs

    SwissX Files Infringement Suit Against Juul Labs

    SwissX Labs, a U.S.-based CBD company, has brought a lawsuit claiming that Juul Labs infringed on one of its patents. Filed in the U.S. District Court of Delaware, the suit alleges that Juulpods copy the use of a patented combined e-liquid and vaporization chamber (cartomizer) owned by SwissX.

    Credit: Insurance Journal

    Owned by billionaire Alki David, SwissX states in the suit that Juul Labs has known about U.S. Patent No. 9,351,522 (522 patent) since at least March 2018. The U.S. Patent and Trademark Office (USPTO) issued the patent in 2016 to inventor Robert Safari, who assigned it SwissX.

    After its issue on May 31, 2016, the 522 patent was was active until June 1, 2020. On June 2, 2020, “the enforceability of the 522 patent temporarily lapsed, due to an inadvertent failure to pay the maintenance fee,” according to the filing. On Dec. 21, 2020, SwissX filed a petition to reinstate the 522 patent at the USPTO. The Petition was granted, and SwissX paid the outstanding fee.

    “Thus, on December 21, 2020, the [522 patent] was restored to full force and effect … SwissX
    is entitled to damages adequate to compensate it for all acts of infringement that occurred, or which may occur, at any point while the [522 patent] was or is in force,” the suit states.

    Juul Labs has not publicly responded to the lawsuit. A judge recently dismissed an investor lawsuit against Juul Labs. However, the company still faces lawsuits from several states and school districts around the U.S.

  • Foundation for a Smoke-Free World Sued

    Foundation for a Smoke-Free World Sued

    Photo: Michal Kalasek | Dreamstime.com

    A former employee of the Foundation for a Smoke-Free World claims she was fired for raising concerns about the organization’s ties to the tobacco industry, reports Bloomberg Law.

    Lourdes Liz, who worked at the Foundation as social media director from February 2018 until February 2020, says she was terminated after objecting to activities “designed to increase the profits of and to do the bidding of Philip Morris International and Altria Group.”

    Liz maintains that the group’s close ties to the tobacco industry violate its status as an independent nonprofit organization.

    The Foundation, which has received millions of dollars in funding from PMI, has met fierce opposition from health groups. Shortly after its creation in 2017, the World Health Organization (WHO) said it would not interact with it, citing a fundamental conflict of interest between the tobacco industry and public health.

    The Foundation is led by Derek Yach, an anti-smoking crusader who, while working at the WHO, was the primary architect of that agency’s Framework Convention on Tobacco Control.

  • Judge Dismisses Investor Lawsuit Against Juul Labs

    Judge Dismisses Investor Lawsuit Against Juul Labs

    Photo: Okan Caliskan from Pixabay

    A federal judge in Fort Lauderdale, Florida, USA, has dismissed investors’ lawsuit against tobacco distributor Greenlane Holdings, reports Reuters.

    Investors filed a class action lawsuit, claiming Greenlane should have mentioned a pending ban on e-cigarettes before publicly offering stock in 2019.

    U.S. District Judge Roy Altman dismissed the proposed class action, saying the distributor for Juul Labs had no duty to flag San Francisco’s then-pending ban on e-cigarettes to investors ahead of its initial public offering in 2019, according to Reuters. Altman called the class action “nothing more than a hammer in search of a nail.”

    Altman ruled that the investors did not have a viable claim under the Securities Act of 1933 because Greenlane warned them of the risk of increased tobacco regulation in its registration statement, and the proposed e-cigarette ban was already public.

  • Courts Pave Way for Samsung Vape Battery Explosion Suit

    Courts Pave Way for Samsung Vape Battery Explosion Suit

    Photo: 정수 이 from Pixabay

    A superior court in California has denied a request by Samsung to dismiss a lawsuit about an exploding e-cigarette lithium-ion battery.

    According to the complaint, the plaintiff had purchased the Samsung batteries on the recommendation of an e-cig retailer, and used them without issue until April 14, 2018, when the Samsung battery exploded in his pocket, inflicting second- and third-degree burns on his left leg and genitalia, requiring skin-graft surgery, and leaving him with permanent scarring, discoloration and hyper-sensitivity.

    According to the lawsuit, Samsung had known since at least January 2016 that individual consumers were purchasing and using Samsung batteries for use in electronic cigarettes—a use that Samsung allegedly knew would subject consumers to potential harm. Instead of taking meaningful action to limit the risk or remove its batteries from the marketplace, Samsung ignored the problem, resulting in at least 88 cases filed against Samsung for similar battery explosion issues.

    Samsung filed a motion for summary judgment/adjudication attempting to dismiss the case, including a request to dismiss claims for punitive damages. The Court denied Samsung’s motion in its entirety, leaving it to the trier of fact to determine not only Samsung’s liability for the harm caused by its batteries, but Samsung’s culpability for punitive damages as well.

    “Samsung has known for years that its batteries were being used in e-cigarette products,” said Greg Bentley of Bentley & More, the law firm representing the plaintiff, in a statement. “Instead of getting them off the market, Samsung has taken the greedy path putting profit over safety, evidenced by the huge uptick in sales of just this one model alone—from 14.1 million sales in 2015 to 63.7 million in 2017, and many millions more over the last three years. Enough is enough. We look forward to the jury seeing the evidence and holding Samsung accountable.”

    It is believed that this is the first of its kind ruling regarding punitive damages claimed against Samsung involving injuries suffered as a result of an e-cigarette battery explosion.

  • South Africa Vaping Ban Ruled Unconstitutional

    South Africa Vaping Ban Ruled Unconstitutional

    Photo: David Carillet – Dreamstime.com

    South Africa’s ban on vaping and tobacco sales during the country’s hard lockdown earlier this year was unconstitutional, the country’s High Court ruled Dec. 11.

    From March to August, the government prohibited sales of tobacco products and alcohol to help stem the spread of the coronavirus. Market leader British American Tobacco South Africa (BATSA) and smaller companies united in the Fair-trade Independent Tobacco Association (FITA) challenged the ban, arguing that a short-term ban on a product whose health risks become evident only in the long run makes no sense.

    They also questioned the rationale of the argument around cigarette sharing. Tobacco shortages and high prices of black-market cigarettes would only increase the likelihood of smokers sharing their “stompies,” the tobacco companies said.

    The government lifted the ban before the matter had been heard in court, but BATSA decided to proceed with the court action to prevent the ban from being reintroduced at a later stage of the pandemic.

    In its ruling Friday, the Western Cape High Court judges who presided over the case said Regulation 45, which Minister Nkosazana Dlamini-Zuma relied upon for the ban, “cannot and does not withstand constitutional scrutiny.”

    In court, the government had argued that the ban was aimed at reducing the occupation of intensive care unit beds by smokers. If people didn’t vape or smoke, they would likely not get Covid-19 in a more severe form, it argued. But BATSA maintained the government had not justified the ban in law or science.

    Tobacco companies expressed satisfaction with Friday’s ruling.

    “British American Tobacco South Africa has been vindicated in its view that the disastrous ban on tobacco sales was unjustified and unconstitutional after the Western Cape High Court ruled in its favor,” the company wrote in a press release.

    “The five-month ban on tobacco and vapor products sales was ill-considered, unlawful and has worsened the illicit trade in cigarettes and vapor products in the country.”

    “We note and welcome the judgment of the full bench of the Western Cape High Court, wrote FITA in a statement.  

    “The court further found Regulation 45 to be neither necessary nor that it furthered the objectives set out in section 27(2) of the Disaster Management Act. This, of course, was one of the arguments advanced by FITA in its challenging of the ban on the sale of cigarettes and tobacco-related products, which the full bench of the North Gauteng High Court erred in finding same to be necessary.”

    In the wake of the court ruling, BATSA also renewed its call for South Africa to urgently ratify the World Health Organization Illicit Trade Protocol to eradicate the illegal sale of cigarettes. The company stated that ratifying the protocol is “the only way for the country to claw back tax losses resulting from the explosion in illicit trade that occurred during the ban on tobacco and vapor products.”

    In July, BATSA estimated that the ban on legal cigarette sales had cost South Africa ZAR4 billion ($241.7 million) in lost excise tax revenues and 30,000 lost industry jobs.

  • Greenville the Second South Carolina City to Join Juul Suit

    Greenville the Second South Carolina City to Join Juul Suit

    Officials with the Greenville County school district say the school system will file a lawsuit against the makers of Juul e-cigarettes for “targeting its products to school-age children.”

    Credit: Insurance Journal

     

    The Greenville County Schools board of trustees voted on Tuesday to hire the Halligan, Mahoney & Williams law firm in Columbia to represent the district on the lawsuit, according to the Greenville News.

    “This week, the Board of Trustees voted to protect the health and safety of students. We agreed to pursue legal action against the makers of Juul e-cigarettes for purposely targeting its products to school-age children and the impact that it has had on the School District and its students,” board chairwoman Lynda Leventis-Wells said in a written statement to The Greenville News.

    The lawsuit will join dozens of others filed in northern California as part of multidistrict litigation against Juul Labs Inc. Lexington County School District One filed a lawsuit against the company in October that claims Juul’s strategy was “to create a nicotine product that would maximize profits through addiction.”