Juul Labs begins distributing settlement checks of up to $9,000 to consumers following a class-action lawsuit over alleged high pricing and illegal marketing to minors.
At a Glance
- A $300 million settlement fund was approved for distribution on October 8, 2024.
- Consumers who purchased Juul products before December 7, 2022, and filed claims by February 5 are eligible.
- Payment amounts vary based on individual Juul product spending and total claims submitted.
- Juul Labs has not admitted wrongdoing but agreed to settle to resolve past legal issues.
- The settlement aims to compensate consumers allegedly misled or harmed by Juul’s actions.
Settlement Details and Eligibility
The court-approved distribution of a $300 million settlement fund marks a significant development in the legal saga surrounding Juul Labs. Consumers who purchased Juul products in the United States on or before December 7, 2022, and submitted claims by February 5, 2024, are now receiving payments. The settlement fund, managed by the Settlement Trust rather than Juul Labs directly, is being dispersed to approximately 842,000 valid claimants.
Payment amounts vary significantly, with some users reporting receiving checks ranging from a few hundred dollars to over $9,000. The exact amount each claimant receives depends on their individual spending on Juul products and the total number of claims submitted. Notably, the court authorized payments totaling $201.9 million for the valid claims processed.
$300M JUUL class action lawsuit begins sending payments https://t.co/HmjJ5JGNy7 pic.twitter.com/KA1TZMEbti
— Eyewitness News (@ABC7NY) October 23, 2024
Legal Context and Juul’s Response
The settlement stems from a lawsuit alleging that Juul Labs engaged in high pricing practices and illegal marketing targeting minors. However, it’s crucial to note that the court did not rule on these claims, and Juul Labs has not admitted to any wrongdoing. Instead, the company agreed to the settlement as a means to resolve past legal issues and move forward.
A Juul spokesperson told Newsweek, “The payment of settlement funds is managed by the Settlement Trust, not directly by Juul Labs.” The spokesperson said they were glad to be moving forward and “are focused on advancing our mission, including our efforts to combat underage use of our products, which has been cut by 98 percent since 2019 according to the most recent government data.”
This settlement is part of a broader legal landscape for Juul Labs, which has faced over 8,000 lawsuits. The company previously settled a $440 million multi-state investigation, bringing its total legal costs to nearly $3 billion. Despite these financial setbacks, Juul Labs has managed to avoid bankruptcy through cost-cutting measures, layoffs, and securing additional funding from investors.
Impact and Criticism
While the settlement aims to compensate consumers who may have been misled or harmed by Juul’s alleged actions, some critics argue that the payout may not serve as a sufficient deterrent for future misconduct. Juul’s profits reportedly exceed the settlement amount, raising questions about the long-term impact of such legal actions on corporate behavior.
The settlement has also brought attention to the broader issues surrounding e-cigarette marketing and youth vaping. While Juul Labs claims to have significantly reduced underage use of its products, the legal actions against the company have sparked ongoing discussions about the responsibilities of e-cigarette manufacturers in public health and consumer protection.
Sources
- Juul Labs To Send Checks to Users: Here’s Who Is Getting One
- The Juul class action lawsuit is paying people huge amounts of money
- $300M JUUL class action lawsuit begins sending payments
- $300 million juul settlement begins and recipients are sharing their checks on social media