Juul to pay Minnesota $60.5 million to settle youth vaping lawsuit

Today, on May 18, it was reported that the American e-cigarette brandJUUL Labs and Altria will pay $60.5 million to Minnesota, which state officials say is the largest per capita settlement agreement regarding youth vaping to date.

State officials say most of the funds are expected to be used for education and prevention programs aimed at curbing youth tobacco use.

Juul has now agreed to pay over $1 billion in settlement fees to dozens of states and territories due to claims that the e-cigarette company targeted young people in its marketing.

A separate $462 million settlement announced in April will be distributed among six states and Washington, D.C.

Attorney General Keith Ellison, who filed the lawsuit in 2019, stated that the amount obtained is more than what Juul earned in Minnesota from 2015 to 2021.

"If they profited by selling deceptive and harmful products to our kids, we can get our money back," he said.

A Juul spokesperson referred to the company's April statement regarding the settlement, which stated that resolving the company's past issues and historical legal challenges remains a key priority to ensure our future certainty.

The statement read: As we thoroughly address the company's past, we will focus on our path forward to maximize the value and impact of our product technology and scientific foundation.

Altria, which was listed as a co-defendant after acquiring a stake in the company in 2020, stated: Resolving this case is in the best interests of Altria and our shareholders, and we have agreed to settle to avoid further costs and uncertainties.

The company no longer has any economic interest in Juul and believes that the claims made against us in this lawsuit and other Juul-related lawsuits are baseless.

Details: In addition to the payments to be made over eight years, the settlement also requires Juul to publicly release internal documents related to the lawsuit, which Ellison stated will bring a lot of transparency to the company's practices.

It also prohibits Juul from advertising on clothing, entertainment, and social media platforms, and requires the establishment of retail compliance plans related to age verification.

Other restrictions target sponsorship activities, flavored products, and the use of free samples.

Notably: About $17 million of the settlement will be used to pay legal fees for the state government and its hired external lawyers to help handle the case.

Minnesota, which initially sought $100 million from these companies, was the first state to bring its lawsuit to trial.

The settlement agreement was announced in mid-April, just as closing arguments were about to begin. According to the terms, details will be kept confidential for 30 days.

In 1998, Minnesota reached a landmark $6.5 billion settlement with major tobacco companies. The agreement also included document disclosures.

What's next: Legislators are drafting a bill authorizing the state government to use this money.

According to the terms, more than one-third of the spending—$22.75 million—must be transferred within 30 days. Sixty percent will be paid within a year.

Public health advocates hope this money will help reverse the recent rise in youth vaping.

"We know what works," said Laura Oliven, tobacco control manager at the Minnesota Department of Health. "With this funding, we will be able to conduct intensive, focused work and reverse these rates."