E-cigarette maker Juul reaches settlement with 10,000 plaintiffs

E-cigarette maker Juul reaches settlement with 10,000 plaintiffs

Juul Labs is battling to stay afloat after the FDA found the company had failed to address safety concerns and ordered all its products off the market in the United States
Juul Labs is battling to stay afloat after the FDA found the company had failed to address safety concerns and ordered all its products off the market in the United States. Photo: Patrick T. FALLON / AFP/File
Source: AFP

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US e-cigarette manufacturer Juul Labs said on Tuesday it had reached a settlement with about 10,000 plaintiffs in California after the company was accused of marketing its products to teenagers.

The vaping giant did not disclose the amount of the settlements, which it said were related to more than 5,000 cases, but said the agreements "represent a major step toward strengthening Juul Labs' operations and securing the company's path forward."

The complaints had been filed for personal injury, with some in consumer class action lawsuits, and others filed by government entities or Native American tribes.

Juul is battling to stay afloat after the US Food and Drug Administration found the company had failed to address safety concerns and ordered all its products off the market in the United States.

The company has appealed the decision but announced last month it had been forced to lay off around 400 employees and cut its operating budget by up to 40 percent.

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Juul said in November it had secured financing from early investors to maintain its operations.

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Source: AFP

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