Juul Reaches Settlement of Over 5,000 Lawsuits
Wall Street JournalDec 24, 2022
The Facts
E-cigarette maker Juul Labs has announced it has settled more than 5K lawsuits with roughly 10K individual plaintiffs. The company added on Tuesday that it secured an equity investment to cover the settlement costs, however, the financial details were not disclosed.
The settlement covers two leading cases set to go to trial next year and four broad groups, including personal injury plaintiffs, Juul consumers, government entities like school districts, and Native American tribes. Lawsuits brought by several attorneys general are still pending.
The Spin
Narrative A
Not only should Juul be severely penalized through fines, but the fraudulent company should face criminal RICO charges now that we know it was aware of the deceptive nature of its marketing. Children who would otherwise have never smoked have become dangerously addicted. Hopefully this is one of the final steps toward abolishing the e-cigarette industry.
Narrative B
While restricting teens' access to vapes should be a priority, if the government decides to banish Juul from the market it could lead to former smokers returning to old habits. The FDA should consider the needs of both young non-smokers and older former smokers before making any sweeping decisions.
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