US Juul Class Action Nears Trial

On July 22, U.S. District Judge William Orrick III denied most of the claims made by 19 plaintiffs from 14 states against Juul and its leaders. The lawsuit accuses Juul and its leaders of intentionally using deceptive advertising and marketing practices to entice young people into vaping, thereby creating a new generation of nicotine addicts.

The plaintiffs claim that Juul failed to warn consumers that its e-cigarette products are highly addictive and that the company falsely claimed in its advertising and labeling that its pre-filled pods contain 5% nicotine, equivalent to that found in a pack of cigarettes, while the pods actually contain much higher levels of nicotine. They also allege that Juul fraudulently marketed its e-cigarette products as a "safer alternative" to combustible cigarettes.

The plaintiffs seek to hold Juul and Altria Group accountable for fraud, negligence, misrepresentation, strict product liability, and medical monitoring.

Judge Orrick denied the motion to dismiss claims against Juul founders and executives James Monsees and Adam Bowen, stating that the plaintiffs "adequately alleged that Monsees and Bowen engaged in conduct intended to mislead the public and the plaintiffs about the dangers of Juul."

Orrick also denied Altria's motion to dismiss, noting that Altria and Juul had meetings in California regarding the formulation of "business agreements and arrangements through which Altria supported [Juul] in manufacturing, regulation, marketing, and distribution, and how Altria's efforts achieved their mutual goals through [Juul] in California."

Orrick found that many of the arguments presented by Altria and the founders and directors of Juul could not be adequately assessed at this late stage of the litigation, at which point a jury or judge could review more evidence.