Category: Litigation

  • Two Florida School Districts Settle With Juul Labs

    Two Florida School Districts Settle With Juul Labs

    Two school districts in the U.S. state of Florida have settled with Juul Labs after accusing the company of marketing its e-cigarettes to children.

    Palm Beach County School Board members met Wednesday to approve an initial settlement with the e-cigarette manufacturer as a result of joining a national lawsuit brought by more than 1,400 government agencies.

    The settlement will likely result in more than $10 million for Palm Beach County schools over the next five years, according to district staff, according to the Palm Beach Post.

    The school district was among the governmental entities and 32 tribal governments that sued the company, along with 8,500 individuals.

    Orange County Public Schools, which includes the city of Orlando, will receive an estimated $5.4 million as part of a settlement against a vape and e-cigarette company that is accused of marketing its products to children, according to Orlando News.

    In June 2020, Orange County Public Schools joined thousands of other school districts and individuals who entered into litigation against Juul Labs.

    In December, the company reached a settlement for hundreds of millions of dollars in connection with the design, manufacture, production, advertisement, marketing, distribution, sale, use, and performance of Juul products.

  • Altria Asks FTC to Drop Juul Acquisition Lawsuit

    Altria Asks FTC to Drop Juul Acquisition Lawsuit

    Altria Group has asked the U.S. Federal Trade Commission to drop its 2020 challenge of the company’s 2018 acquisition of a 35 percent share in Juul Labs, reports Reuters. On March 3, the tobacco giant announced it had exchanged its stake for a license to Juul’s heated tobacco intellectual property rights.

    In its legal challenge, the FTC contends that the tobacco giant’s $12.8 billion investment in Juul violates antitrust law because the company acquired the position rather than continuing to compete against Juul in the market for closed-system e-cigarettes.

    In February 2022, an administrative law judge dismissed the FTC claims, finding that the evidence failed to sustain the alleged violations.

    The next step would have been for the full commission to decide whether to accept that decision and dismiss the FTC case.

    However, Altria recently exited its investment and previously terminated a non-compete agreement with Juul that the FTC opposed.

    “There is nothing left of the transaction to be challenged. Altria and JLI respectfully ask the Commission to dismiss this matter as moot,” Altria Group and Juul Labs wrote in a filing to the FTC.

  • Top Court Declines to Hear LA County Flavor Ban Appeal

    Top Court Declines to Hear LA County Flavor Ban Appeal

    Image: Tobacco Reporter archive

    The U.S. Supreme Court on Feb. 27 declined to hear an appeal by three Reynolds American Inc. subsidiaries seeking to overturn the county of Los Angeles ban on flavored tobacco products, reports Law360.

    R.J. Reynolds Vapor Co., American Snuff Co. and Santa Fe Natural Tobacco Co. had petitioned the high court in October to take another look at the case after the full 9th Circuit upheld a lower court’s dismissal of the suit.

    The RAI companies said the 9th Circuit had twice before erred in allowing sales bans at the state and local level that were preempted by federal law.

    While the federal Tobacco Control Act grants state and local municipalities broad authority to regulate the sale of tobacco products, it does not allow them to completely prohibit the sale of those products for failing to meet state or local tobacco product standards, the companies argued.

    In dismissing their initial suit, District Judge Dale S. Fischer in 2021 found that the ban doesn’t regulate tobacco product standards. The judge said the ordinance is protected by the federal law’s preservation clause, which allows states and localities to prohibit the sale of tobacco products even if those bans are stricter than federal law.

    The companies appealed, calling the ban unconstitutional and saying state and local governments can’t bar the sale of tobacco products because they disagree with federal tobacco standards.

    L.A. County countered that the ban doesn’t pose an obstacle to federal policy since the FDA announced it intends to ban menthol cigarettes and all flavored cigars.

  • Texas Court to Hear Exploding Battery Case

    Texas Court to Hear Exploding Battery Case

    Photo: unlimit3d

    The Supreme Court of Texas has agreed to hear a lawsuit by a vaper burnt by an exploding battery to determine if Texas courts have jurisdiction over LG Chem America, a subsidiary of South Korea-based LG Chem, which made the battery, reports Law360.

    In 2016, Texas resident Tommy Morgan bought an 18650 lithium-ion battery manufactured by LG Chem. He claims it unexpectedly exploded and caught on fire, leading to him suffering permanent and severe injuries, according to his lawsuit filed in 2019 in Brazoria County District Court.

    The companies are facing other lawsuits by Texas residents with similar claims concerning batteries exploding. But intermediate appeals courts have come to different conclusions on whether LG Chem has enough contacts in the state to face claims.

    LG Chem America and LG Chem have argued that Texas courts lack jurisdiction because the companies don’t sell individual batteries in Texas nor directly to Texas customers. LG has consistently stated in litigation throughout the country that this battery was never intended to be used in e-cigarettes or vaping devices.

    Morgan told the Texas high court that the company deliberately shipped its products to Texas customers who were later injured, therefore Texas courts have jurisdiction.

  • U.S. Court Orders Elfbar to End U.S. Vape Sales

    U.S. Court Orders Elfbar to End U.S. Vape Sales

    Photo: md3d

    A U.S. federal judge on Feb. 23 ordered Shenzhen Weiboli Technology to stop marketing its Elfbar e-cigarettes in the U.S., finding that VPR Brands, which makes and sells Elf brand vapes, is likely to succeed on its claims that the Elfbar vapes infringe its trademark, reports Law360.

    According to U.S. District Judge Aileen M. Cannon, VPR has shown there is a likelihood of confusion and the company stands to suffer harm if its Chinese competitor is allowed to keep selling the Elfbar vapes.

    In November, VPR asked for an injunction blocking Shenzhen Weiboli from continuing to use the Elfbar mark, arguing the alleged infringement is costing VPR about $100 million because of the effect on future sales.

    VPR claims Shenzhen Weiboli is not only infringing VPR’s Elf trademark but also its patent for its e-cigarette device.

    While there is no direct evidence that Shenzhen Weiboli deliberately intended to adopt the Elf mark to take advantage of the existing trademark, Judge Cannon wrote that the company was well aware of the Elf mark and that there was potential for confusion, as the U.S. Patent and Trademark Office denied the registration of an Elfbar trademark specifically for those reasons.

    VPR welcomed the judge’s decision. “VPR is pleased that the court found Elf is a strong trademark and granted the injunction,” said Joel B. Rothman of Sriplaw, which represented VPR in the case. “The injunction will allow VPR to move quickly against infringers and counterfeiters in the marketplace.”

    An attorney for Shenzhen Weiboli said the company intends to appeal the order.

  • Juul MDL Paused for Review of Class Certifications

    Juul MDL Paused for Review of Class Certifications

    Credit: Piter2121

    The California federal judge presiding over multidistrict litigation regarding Juul vaping products has agreed to postpone a trial that would have parent company Altria Group Inc. facing RICO claims, allowing the Ninth Circuit to first review the trial court’s certification of four classes of plaintiffs who brought the suit, according to Law360.

    Last week, A U.S. district judge handed Juul Labs Inc preliminary court approval of a $255 million settlement resolving claims by consumers that it deceptively marketed e-cigarettes, as the company seeks to resolve thousands of lawsuits.

    The class action settlement resolves claims by people who say they would have paid less, or not bought the e-cigarettes at all, if Juul had not downplayed the products’ addictiveness and appeal to teenagers through social media campaigns and other means.

    The settlement is part of a larger, global agreement by Juul to resolve thousands of lawsuits by school districts, local governments and individuals accusing it of contributing to a youth vaping epidemic.

  • Juul Labs has Early Approval for Consumer Settlement

    Juul Labs has Early Approval for Consumer Settlement

    Credit: Insurance Journal
    • Judge says the settlement of lawsuits seems ‘fair, reasonable’
    • Specific settlement details were not made public at a court hearing

    A U.S. district judge handed Juul Labs Inc on Friday preliminary court approval of a $255 million settlement resolving claims by consumers that it deceptively marketed e-cigarettes, as the company seeks to resolve thousands of lawsuits.

    Judge William Orrick in San Francisco said the proposed class action settlement resolving claims by consumers who said they overpaid for Juul’s vaping products was “fair, reasonable, and adequate,” according to a court filing, as reported by Reuters.

    Lawyers in the case said they expect to return to the judge in July seeking final approval.

    The class action settlement resolves claims by people who say they would have paid less, or not bought the e-cigarettes at all, if Juul had not downplayed the products’ addictiveness and appeal to teenagers through social media campaigns and other means.

    The settlement is part of a larger, global agreement by Juul to resolve thousands of lawsuits by school districts, local governments and individuals accusing it of contributing to a youth vaping epidemic.

    The company last month said it had reached settlements with about 10,000 plaintiffs covering more than 5,000 cases. It has not said how much it will pay, though the Wall Street Journal reported the deal is valued at $1.7 billion.

    Altria Group Inc, Juul Labs’ largest stakeholder, has asked a federal judge to order the e-cigarette manufacturer to turn over details of the settlement claiming the details remain “shrouded in secrecy” even from other parties in the litigation.

  • Fifth Circuit Grants Triton Rehearing Before Full Court

    Fifth Circuit Grants Triton Rehearing Before Full Court

    Fifth Circuit Court of Appeals

    The U.S. Court of Appeals for the Fifth Circuit granted Wages and White Lion Investments LLC, doing business as Triton Distribution, and Vapetasia LLC’s, request for the full court to re-hear Triton’s appeal of its marketing denial order (MDO), according to a court order handed down today.

    Triton lost before a three-judge panel in July, but attorneys for Triton then filed a petition for a rehearing en banc by the entirety of the Fifth Circuit.

    Most circuit court appeals are decided by a three-judge panel, however, the special circumstances surrounding the U.S. Food and Drug Administration’s denial of Triton’s premarket tobacco product applications (PMTAs) motivated the court to allow a majority of the active judges (an estimated 17 judges) to vote to rehear the case “en banc.”

    The FDA rejected applications to market 55,000 flavored e-cigarettes in August 2021, including Triton’s, and said applicants would likely need to conduct long-term studies establishing their products’ benefits to win approval.

    A Fifth Circuit panel in October then agreed with Triton’s claim that the new requirement for long-term studies differed from earlier FDA guidance and called the action a “surprise switcheroo” and the panel allowed Triton to keep selling its e-cigarettes until another panel could hear its appeal.

    The court then denied Triton’s request for review of the agency’s MDOs in a 2-1 decision.

    The Fifth Circuit will hear the en banc argument in Wages and White Lion Investments v. U.S. Food & Drug Administration in May.

  • RJR Vapor Denied New Trial in $95 Million Altria Verdict

    RJR Vapor Denied New Trial in $95 Million Altria Verdict

    Credit: Kristina Blokhin

    RJ Reynolds Vapor Co. was denied a new trial on its September loss that awarded $95 million to Altria Group for its Vuse Alto e-cigarette’s infringement of three vape pod patents.

    “That the jury did not agree with” Reynolds “does not mean the trial was unfair,” Judge N. Carlton Tilley Jr. wrote in an opinion issued Thursday in the U.S. District Court for the Middle District of North Carolina, according to Bloomberg Law.

    Tilley denied BAT subsidiary Reynolds’ motion for a new trial or to reduce the damages jurors awarded to Altria Client Services in their Sept. 7 verdict.

    In its retrial request, Reynolds Vaper stated that “Altria’s improper injection of inflammatory evidence regarding patent infringement allegations against Reynolds in other cases denied Reynolds a fair trial. Erroneous evidentiary rulings also prejudiced Reynolds’ ability to present its defense. Those errors independently, and under the cumulative error doctrine, affected the verdict such that a complete new trial is required.”

    Altria said in a statement that “this was a fair trial. There is no basis for another trial, and we are pleased that the jury correctly found that Reynolds Vapor has infringed a number of our patents.”

  • Altria Accuses Juul Labs of Hiding Payment Details

    Altria Accuses Juul Labs of Hiding Payment Details

    Altria Group Inc, Juul Labs’ largest stakeholder, has asked a federal judge to order the e-cigarette manufacturer to turn over details of its settlement with about 10,000 plaintiffs seeking to hold it responsible for a rise in youth vaping.

    In a motion filed Wednesday in federal court in San Francisco, the Virginia-based company said the settlement, reported by The Wall Street Journal to be worth $1.7 billion, remains “shrouded in secrecy” even from other parties in the litigation.

    Marlboro cigarette maker Altria, which took a 35 percent stake in Juul in 2018, was not part of the settlement and remains a defendant in mass tort litigation consolidated before U.S. District Judge William Orrick. Plaintiffs, including individuals and local government entities, accuse it of taking part in shaping Juul’s strategy to market e-cigarettes to minors, according to Reuters.

    Altria said it needed to see details of the settlement, and the negotiations leading up to it, in order to evaluate its own potential remaining liability and explore potential claims against third parties.

    While there may be reasons for keeping the settlement out of public view, the company said, Juul’s refusal to share it with Altria “goes far beyond the protections needed to address those concerns, lack any legal basis, and would severely prejudice” Altria.

    In a separate motion Wednesday, Altria also asked Orrick to put on hold a class action seeking refunds on behalf of all Juul purchasers nationwide while Altria appeals the judge’s order certifying the class. The class action is one part of the larger consolidated mass tort before Orrick.