US-based e-cigarette maker Juul announced Tuesday it has reached a significant settlement, closing more than 5,000 complaints from 10,000 people, after the company was accused of targeting teenagers in its marketing strategy and directing its products to them to sell.
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“Juul Labs has reached agreements with the complainants,” the company said in a statement, without being able to provide details. “Participation funding” has been secured to fund this operation, it said.
The company notes that the resolution is “global” and covers complaints against “Juul Labs and its officers and directors” that have been consolidated in a California court.
Some have been filed for personal injury, others in class action lawsuits brought by consumers or by government agencies or Native American tribes.
“These agreements represent an important step in strengthening Juul Labs’ business and continuing the company’s journey in fulfilling its mission to move adult smokers away from combustible cigarettes while tackling underage smoking,” the company said.
The company is the target of a number of complaints and also faces the decision by US health officials to ban the sale of electronic cigarettes in the country in June, a decision temporarily overturned by a Washington appeals court.
Juul recently announced a restructuring plan involving layoffs and should be able to avoid bankruptcy thanks to the equity contribution from shareholders.
The American company recalls that it “reached agreements with 37 states and territories over the past year” and ensures that it “continues discussions with other key stakeholders to resolve remaining disputes.”
Indeed, several agreements have been announced in recent months, including one in September involving 34 states or territories of the United States, relating to $438.5 million in compensation.