Juul Agrees to $40 Million Settlement in North Carolina Lawsuit

Juul Labs has reached a settlement with state attorneys in North Carolina in which the maker of e-cigarette devices will pay $40 million and change its business practices in the state after a 2019 lawsuit alleged that the company marketed its products to teens and misled the public about risks of using the devices.

As part of the settlement, in North Carolina, Juul will no longer be able to:

• Sell flavored vaping products without FDA authorization
• Market its products to minors or use individuals under the age of 35 in advertising
• Make claims that e-cigarettes are safer or better for one’s health than traditional cigarettes

Juul will also have to implement an age-verification barcode system where its products are sold and limit online sales to North Carolina customers. The $40 million being paid in the settlement will be used to fund youth smoking cessation and prevention programs.

While North Carolina was the first state to file suit against Juul, at least 9 others have since followed and a coalition of 39 states is also investigating the company, according to a report by CNBC.