Juul's Consumer Settlement Is 'Reasonable & Adequate', US Judge Says
Juul Labs Inc, a unit of Altria Group (NYSE: MO), has reportedly secured preliminary court approval of a $255 million settlement resolving consumer claims for deceptive marketing.
The settlement is part of a larger agreement by Juul to resolve several lawsuits by school districts, local governments, and individuals accusing it of contributing to a youth vaping epidemic.
U.S. District Judge said the proposed class action settlement resolving claims by consumers who said they overpaid for Juul's vaping products was "fair, reasonable, and adequate." Reuters reported citing a court filing.
In December, Juul Labs agreed to pay over $1 billion to resolve about 10,000 lawsuits covering over 5,000 cases.
The class action settlement resolves claims for people saying they would have paid less or not bought the e-cigarettes if Juul had not downplayed the products' addictiveness and appealed to teenagers.
Juul had agreed to pay $438.5 million in September to settle claims by 34 U.S. states and territories.
In June, the FDA briefly banned Juul's e-cigarettes, though it later put the order on hold following an appeal.
Juul Labs received a new lifeline with a fresh capital infusion to stave off the proposed bankruptcy in November.
Price Action: MO shares are down 0.89% at $44.54 during the premarket session on the last check Monday.
Photo via Wikimedia Commons
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