Juul and Altria Reach Settlement With Minnesota Over Youth Vaping Addiction

Today, on April 18, news from foreign media reported that JUUL Labs announced on Monday that it has reached a settlement with the state of Minnesota over a lawsuit against the vape manufacturer and tobacco giant Altria—this is the first of thousands of cases against the vape manufacturer—just before closing arguments.

Just days ago, Juul announced the largest settlement ever regarding the marketing of its highly addictive products.

According to the Associated Press, Minnesota Attorney General Keith Ellison stated in a release that the terms will remain confidential until formal documents are submitted to the court within 30 days.

If it is similar to Juul's other settlement agreements, the Minnesota settlement may include millions of dollars in payments and various restrictions on the marketing, sale, and distribution of the company's vape products.

Ellison indicated before the trial that he was seeking over $100 million in damages.

Ellison stated: After three weeks of trial, emphasizing and publicly documenting the actions taken by Juul and Altria that led to the youth vaping epidemic, we have reached a settlement agreement that is in the best interest of Minnesotans.

Juul stated it will cooperate with the state to finalize the details in the coming weeks.

"We have now reached settlements with 48 states and territories, providing over $1 billion to participating states to further combat underage use and develop cessation programs," the company said in a statement. "This is in addition to our global resolution of private litigation in the U.S., which involves over 5,000 cases filed by approximately 10,000 plaintiffs."

Ellison stated: After Minnesotans have brought youth smoking rates down to the lowest level in a generation, they have lured, deceived, and addicted a new generation of kids. Now, big tobacco companies are returning under new names, but the game remains the same.

Juul's attorney David Bernick countered in his opening statement that Juul's aim has always been to transition adult smokers to a less harmful product that still provides a satisfying nicotine experience. He stated that Juul has not taken any steps to intentionally drive demand among young people, indicating that the increase in youth vaping is an indirect result of increased adult demand.

Altria's attorney William Geraghty denied Ellison's claims regarding Altria's significant investment in Juul.

Washington D.C.-based Juul Labs launched popular flavors such as mango, mint, fruit medley, and crème brûlée in 2015. Teenagers fueled its rise, with some becoming addicted to Juul's high-nicotine pods. Due to strong backlash, the company halted all U.S. advertising in 2019 and discontinued most flavors, losing its popularity among teenagers. Juul's market share in the currently multi-billion dollar market has dropped from a high of 75% in 2018 to around 33%.

In September, Juul agreed to pay nearly $440 million over 6 to 10 years to settle a two-year investigation by 33 states into its marketing of high-nicotine vape products to young people. This settlement amount is approximately 25% of Juul's $1.9 billion U.S. sales in 2021.

Ellison issued the following statement:  

"In Minnesota, the health and safety of our children is paramount. However, JUUL products have exposed an entire new generation of kids to the addictive and dangerous drug nicotine. After three weeks of trial, emphasizing and publicly documenting these actions in light of the actions taken by JUUL and Altria that led to the youth vaping epidemic, we have reached a settlement in the best interest of Minnesotans."

"Currently, the terms of the final settlement have not been disclosed, but we will announce them soon. When we do, we will do so in conjunction with those who have been harmed, communities, elected officials, and others responsible for protecting our children."

"We follow in the footsteps of former Attorney General Skip Humphrey, who led the historic tobacco trial in Minnesota in 1998. Once again, Minnesota has demonstrated leadership in handling these cases, including conducting trials to hold tobacco companies accountable, protect the health of our communities, and safeguard our children. One of the purposes of my office in bringing this case is to send a message: We will not tolerate the marketing of nicotine products to Minnesota's youth. My office will continue to do its part to protect children from these harmful products." #p#分页标题#e#

Juul also issued a statement, part of which reads:

"Addressing the company's past issues and its historical legal challenges remains a key priority for ensuring our future certainty. While we appreciate the time, attention, and professionalism of the court and jury throughout the trial process, we are pleased to reach a settlement and work with the state to finalize this agreement in the coming weeks. We have now reached settlements with 48 states and territories, providing over $1 billion to participating states to further combat underage use and develop cessation programs. This is in addition to our global resolution of private litigation involving over 5,000 cases filed by approximately 10,000 plaintiffs."