California District Court Dismisses NJOY Lawsuit Against Multiple Vape Brands

  NJOY, a subsidiary of Altria, had its lawsuit against dozens of disposable e-cigarette manufacturers, distributors, and retailers dismissed by a federal district court in California, although the court did not dismiss the case against IMiracle, the manufacturer of Elf Bar.

According to a January 23 report by vaping360, NJOY, a subsidiary of U.S. tobacco company Altria, had its lawsuit against dozens of disposable e-cigarette manufacturers, distributors, and retailers dismissed by a federal district court in California, although the court did not dismiss the case against IMiracle, the manufacturer of ELFBAR.

The lawsuit was filed in October of last year, accusing these companies of selling illegal products in California and across the United States. It sought a nationwide injunction to block the future import and sale of these products, as well as compensatory and punitive damages for harm allegedly caused to NJOY.

The accused companies included manufacturers and distributors of brands such as Breeze, ELFBAR, Esco Bar, Flum, Juice Box, Lava Plus, Loon, Lost Mary, Mr. Fog, and PUFF Bar, which together account for a large share of the U.S. disposable e-cigarette market.

Judge Terry J. Hatter Jr. of the U.S. District Court for the Central District of California signed the dismissal order on January 18. The court ruled that the defendants had not participated in the “same transaction, occurrence, or series of transactions or occurrences,” and therefore had been improperly joined in the lawsuit. For that reason, Judge Hatter dismissed all parties from the suit except for the first defendant, IMiracle.

It is understood that NJOY was once a pioneer in the independent e-cigarette industry and is now Altria’s e-cigarette subsidiary, while Altria is the maker of Marlboro cigarettes in the United States. Last year, the tobacco company acquired NJOY for $2.75 billion after previously walking away from its 35% stake in JUUL Labs. Two NJOY vaping devices are among the six devices currently authorized by the U.S. Food and Drug Administration (FDA).

The judge issued these rulings “without prejudice,” meaning NJOY may refile its claims against the dismissed defendants, potentially as separate lawsuits or in smaller related groups. The court also dismissed NJOY’s unfair competition claims and its motion seeking a preliminary injunction against the defendants’ sales and distribution activities.

As for Hong Kong-based IMiracle, the manufacturer of ELFBAR, the court denied NJOY’s request to serve legal documents by email, noting that for foreign defendants there is an established international procedure (the Hague Convention) for serving legal notice. Going forward, NJOY’s case against IMiracle remains valid, but the litigation cannot proceed until IMiracle has been formally notified by the court.