Tag: Juul Labs

Juul Labs, Altria Vape Suit in Alaska Ends in Mistrial

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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.
December 17, 2024
Juul Labs Hires Wisdom as Managing Director

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Juul Labs has appointed Melissa Wisdom as its new managing director.
Wisdom comes from the Stonegate Group, where she served as chief commercial officer. Prior to that, she also served as a commercial director at Diageo, and held senior positions at prominent national and global brands.
In her new role, Melissa will oversee all of Juul Labs U.K commercial activities as the company seeks to bring its next-generation product technology to more parts of the world.
“Joining Juul Labs as its new managing director is an exciting opportunity to contribute to the company’s bold vision for the future—one where long-term success is achieved through responsible innovation and investment in high-quality, scientifically-supported products,” said Wisdom in a statement.
“I look forward to advancing Juul’s commercial objectives across this rapidly changing industry to ensure we are delivering the best possible alternatives for adult smokers, whilst taking serious action to prevent underage access to and appeal of our products.”
“We are thrilled to welcome Melissa Wisdom as Juul Labs’ new managing director,” said Juul Labs CEO, K.C. Crosthwaite. “Melissa’s extensive commercial experience and her commitment to responsible growth in consumer markets make her an invaluable addition to the team.
“With new U.K. legislation coming down the track and the regulatory environment evolving in many markets, Melissa’s leadership will play a pivotal role in advancing our efforts to drive tobacco harm reduction by offering adult smokers high-quality product technology designed specifically to help them move away from traditional cigarettes.
“I am confident that Melissa will be a huge asset at this exciting time of opportunity for the company.”
November 13, 2024
Alaska Begins Jury Trial Against Juul Labs, Altria
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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.
November 4, 2024
Customers ‘Shocked’ by Juul Labs Lawsuit Payouts

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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.
October 24, 2024
Marlyland Schools Get $2 Million From Juul Labs

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Montgomery County Public Schools (MCPS) in Maryland will receive $2 million to purchase vape detection devices after the Montgomery County Council voted unanimously Tuesday to transmit settlement money from the Juul e-cigarette company to the school system.
The funding comes from a state grant created after the Juul vape company was ordered to pay $7.5 million to the state for marketing its products to minors, media reports.
The settlement included more than 5,000 lawsuits from schools, states, and counties. In 2019, the county joined a state lawsuit against Juul for marketing its products to youth.
According to MCPS officials, the school system plans to use the funds to install vape detectors in high school bathrooms. The school board voted at its Aug. 20 meeting to move forward with the plan, provided the council approved the funding.
October 9, 2024
Baltimore Settles Suit With Juul Labs for $7.5 Million

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Baltimore, Maryland, Mayor Brandon Scott has announced a lawsuit settlement with Juul Labs. According to the City of Baltimore, the e-cigarette company must pay $7.5 million by the end of 2024 or make three separate payments of $8 million by October 2026.
The lawsuit was initially filed in 2020 for “deceptive marketing campaigns” aimed towards minors, as well as endangering the health of city residents and costing the city for having to push back against the e-cigarette marketing schemes, as stated by the City of Baltimore, according to media reports.
“Since taking office, my administration has done everything in our power to invest in Baltimore’s young people to ensure they can reach their full potential. Achieving that aim means focusing on every aspect of their lives – including their health,” said Scott.
According to the City of Baltimore, the settlement was reached after they declined to participate in a global resolution that would have only recovered $1.9 million for the city.
“We have and will continue to refuse settlement offers that do not fairly compensate Baltimore City for the harms that the misconduct of these companies brings on us,” said City Solicitor Ebony Thompson.
September 5, 2024
Altria, Njoy Disagree With ITC Determination

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Altria Group, and its operating company, Njoy, disagree with the U.S. International Trade Commission (ITC) Administrative Law Judge’s (ALJ) initial determination regarding Juul Labs’ patent infringement complaint against NJOY.
Last week, the ALJ provided notice of their initial determination supporting Juul Lab’s allegations in its complaint and recommending an exclusion order prohibiting the importation of Njoy ACE into the United States.
“Altria and NJOY respectfully disagree with the ALJ’s initial determination, and NJOY looks forward to presenting its position to the full ITC, which is expected to issue a final decision by December 23, 2024,” a press release states.
In August 2023, Njoy filed a similar, independent patent infringement complaint against Juul Labs with the ITC seeking a ban on importing and selling JUUL products in the United States. A hearing before the ALJ was held in June 2024, and an initial determination is expected in late September. A positive outcome in this case would not preclude an exclusion order against ACE from taking effect.
“We continue to work to bring this issue to resolution. The parties have engaged with a mediator to attempt to negotiate a resolution of these disputes,” the release states. “In addition, Njoy recently filed Substantial Equivalence (SE) Exemption requests with the FDA to allow Njoy to market an already-developed ACE product with minor modifications that we believe avoid three of the four [Juul Labs] patent claims at issue in the case.”
ACE is the first pod-based vaping product and the only pod-based menthol vaping product authorized by the U.S. Food and Drug Administration as appropriate for the protection of public health. “An exclusion order banning the importation of ACE would severely limit FDA-authorized choices for adults and undermine public health,” the release states.
August 29, 2024
ITC Recommends Ban on U.S. Imports of Njoy Ace

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An administrative law judge (AJL) of the International Trade Commission (ITC) has recommended a ban on importing Njoy Ace products into the United States following a patent-infringement claim filed by Juul Labs.
Ace is the first pod-based vapor product and the only pod-based menthol vapor product authorized by the U.S. Food and Drug Administration as appropriate for the protection of public health. According to Njoy parent company Altria Group, an exclusion order banning the importation of Ace would severely limit FDA-authorized choices for adults and undermine public health.
“Altria and NJOY respectfully disagree with the ALJ’s initial determination, and Njoy looks forward to presenting its position to the full ITC, which is expected to issue a final decision by December 23, 2024,” Altria Group wrote in a statement.
In August 2023, Njoy filed a similar, independent patent infringement complaint against Juul with the ITC seeking a ban on the importation and sale of Juul products in the U.S. A hearing before the ALJ was held in June 2024, and an initial determination is expected in late September. A positive outcome in this case would not preclude an exclusion order against Njoy Ace from taking effect.
“We continue to work to bring this issue to resolution,” Altria wrote in its statement. “The parties have engaged with a mediator to attempt to negotiate a resolution of these disputes. In addition, Njoy recently filed substantial equivalence (SE) exemption requests with the FDA to allow Njoy to market an already-developed Ace product with minor modifications that we believe avoid three of the four Juul patent claims at issue in the case.”
August 27, 2024
New York State Gets $112.7 Million From Juul Labs
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New York State is set to receive $112.7 million from a multistate settlement with Juul Labs Inc. due to its involvement in the youth vaping epidemic, according to the Office of the Attorney General (OAG).
Attorney General Letitia James announced on Friday that the Hudson Valley would receive over $13 million from the historic total of $462 million, to be divided among participating states,” according to media reports.
“E-cigarette use among young New Yorkers shot up after JUUL flooded the market with advertising aimed at teenagers and lies about the safety of its products,” James said. “Now young people are suffering from physical and mental health issues fueled by vaping addiction.
“This settlement puts new limits on JUUL’s marketing and will provide leaders in the Hudson Valley over $13 million to implement new anti-vaping programs to protect our kids.”
The $112.7 million total going to New York State will reportedly be distributed among counties, the Board of Cooperative Education Services (BOCES), and the five largest cities in the state to support programs to reduce and prevent underage vaping.
June 24, 2024
FDA, DOJ Grilled for ‘Unserious’ Action on Illegal Vapes

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U.S. Senators criticized top health and law enforcement officials for their failure to tame the rapidly growing illicit e-cigarette market, reports the Associated Press.
During a hearing on June 12, lawmakers on the Senate Judiciary Committee questioned officials from the Food and Drug Administration and Department of Justice (DOJ) about attempts to manage the vaping market, which has grown to include thousands of flavored, unauthorized e-cigarettes imported from in China.
To date, the agency has approved only a handful of e-cigarettes as alternatives for adult smokers. All other products on the market, including popular products like Juul, are pending review or considered illegal by regulators.
“I simply do not understand how FDA and DOJ have permitted thousands of products to remain on store shelves when their manufacturers have not received authorization, or, in some cases, even filed an application,” said the committee’s chairman, Dick Durbin.
Brian King, director of the FDA Center for Tobacco Products, said the agency has been slowed by a backlog of applications submitted by vape companies seeking approval to sell their products in the U.S. The FDA received millions of premarket tobacco product applications, each of which must be scientifically reviewed.
An industry lobbyist told the committee that the FDA has created an untenable marketplace by rejecting more than 99 percent of applications submitted by companies.

I simply do not understand how FDA and DOJ have permitted thousands of products to remain on store shelves when their manufacturers have not received authorization, or, in some cases, even filed an application.
Dick Durbin, chairman, Senate Judiciary Committee
Ahead of the congressional hearing, several government agencies, including the FDA and the DOJ established a task force to better coordinate the fight against illegal e-cigarettes. Republican Senator Thom Tillis called the timing of the announcement “a political stunt,” and criticized the absence of other federal agencies from the initiative, including Customs and Border Protection (CBP).
“If the timing of the task force formation wasn’t evidence of how unserious the FDA is about tackling the flood of illicit e-cigarettes, FDA’s exclusion of CBP from the task force makes it crystal clear,” said Tillis, who represents North Carolina, a major tobacco-producing state. He urged officials to concentrate enforcement on Chinese brands, rather than large domestic manufacturers like Reynolds American, which is based in North Carolina.
The FDA can conduct investigations and recommend cases, but only the Justice Department can bring lawsuits. The FDA has sent hundreds of warning letters to vape shops and e-cigarette manufacturers in recent years. But the letters have done little to dissuade companies from flouting FDA rules and introducing new vapes.
Disposable vapes account for an estimated 30 percent to 40 percent of the roughly $7 billion-dollar U.S. vaping market. The two best-selling disposables—Breeze and Elf Bar—generated more than $500 million in sales last year, according to Nielsen retail sales data analyzed by Goldman Sachs.
Both brands have been sanctioned by FDA regulators but remain widely available, in some cases with new names, logos and flavors.
King noted that products like Elf Bar cannot legally be sold in China because the government there has banned non-tobacco flavored e-cigarettes. Outraged that brands banned in China are sold in the U.S., Texas Senator John Cornyn vowed to introduce legislation to rectify that situation.
Jefferies analyst Owen Bennett said the Congressional testimony could spur the FDA to approve more products from British American Tobacco and Juul. “This hearing is another example of increasing political pressure for the FDA to act” against unauthorized products, he said in a research note quoted by Bloomberg.
June 13, 2024