Juul Labs reached an agreement that covers more than 5, demands and approximately 54,10 individual plaintiffs. Most of them accused the electronic cigarette company of targeting its marketing strategies to market to children and adolescents.
The media The Wall Street Journal said that Juul secured a capital investment to cover the cost of agreement , without knowing until now how much the amount allocated .
The settlement covers two lawsuits due to go to court early next year and four broad classes that include personal injury plaintiffs, government entities such as school districts and Native American tribes, as well as as Juul consumers.
The company He said that he never targeted young people to attract them to consume his products. He said that has been working to regain public trust.
The news comes after Juul last month announced plans to lay off about a third of its staff and reported funding for some of its investors to avoid bankruptcy. The company has been in talks with investors, including Hyatt Hotels heir Nick Pritzker and California investor Riaz Valani.
“In our continuing fight for our company and mission, today’s news represents another significant step in securing our path forward,” Juul CEO KC Crosthwaite said in a memo to staff on Tuesday, December 6. .
At the end of June, the US Food and Drug Administration (FDA) ordered the recall of Juul Labs Inc. products and denied marketing authorization for its vaping devices and pods. This for not providing sufficient information about possible health risks. It later temporarily suspended that order for further review but did not rescind it.
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