Juul Labs will be paying out US$1.2 billion to 10,000 plaintiffs.
Juul Labs Inc. has agreed to pay US$1.2 billion to settle with an estimated 10,000 plaintiffs in 5,000 lawsuits alleging that the firm was a catalyst for a youth-vaping epidemic in the US, Bloomberg reported. The e-cigarette manufacturer is still being sued for allegedly marketing its nicotine products to teenagers.
The settlement for the agreement, which involves several cases centered in Northern California, is more than three times the amount that was previously disclosed for Juul settlements in other state and local cases.
In order to end a multistate investigation into whether the company had intentionally targeted minors, Juul agreed to pay US$438.5 million in September.
The settlement's full terms have not been made public. Juul has repeatedly denied targeting minors and has not admitted any misconduct in settling other lawsuits.
According to attorneys for the plaintiffs, the latest settlement does not end claims against Altria, which owned a 35% share in Juul.
The agreement does not offer the funds immediately, but will allow the 10,000 plaintiffs to file claims for the allocation of the funds instead.
“These settlements represent a major step toward strengthening Juul Labs’ operations and securing the company’s path forward to fulfill its mission to transition adult smokers away from combustible cigarettes while combating underage use,” Juul said in a statement.