Topline
Payouts have begun stemming from a 2022 settlement involving e-cigarette company Juul and tobacco firm Altria, with users on platforms like Reddit and X claiming they have received thousands of dollars from the $300 million settlement.
Juul settled the lawsuit two years ago. (Photo by Michael M. Santiago/Getty Images)
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Key Facts
Juul settled a class action lawsuit that claimed customers paid more for the e-cigarettes than if the company had accurately described the product’s addictiveness and safety.
The lawsuit, which also accused Juul of unlawfully marketing to minors, was settled for $245 million by Juul and Altria, formerly known as Philip Morris, for $45 million.
Payments to the claimants was approved earlier this month, though the r/juul subreddit suggests payouts may have ramped up this week, as users claimed receiving anywhere from a couple hundred dollars to upwards of $9,000.
The settlement includes consumers who purchased Juul products before Dec. 7, 2022.
Juul did not admit wrongdoing with the settlement and Altria denied the accusations against it.
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Is It Too Late To Make A Claim For A Settlement Payment?
Yes: The deadline to make a claim was Feb. 5.
How Are Payouts Calculated?
A few factors influence the payouts, including how much money claimants spent on Juul products, what years they purchased the products and what age they were when they made the purchases. It appears those who spent more money on Juul products in the eligible time frames will receive higher payouts.
Key Background
The class action lawsuit stemmed from more than 8,000 lawsuits from city governments, school districts, Native American tribes and individuals against Juul, which axed U.S. advertising and discontinued most of its flavors in 2019 following legal battles and government sanctions. The $300 million settlement followed a nearly $440 million settlement after a multi-state investigation into its marketing practices. The company’s legal battles cost it nearly $3 billion as of last year, when Altria, which invested nearly $13 billion into Juul in 2018, pulled out from the e-cigarette company and invested in a rival startup. Juul has since avoided bankruptcy through cost-cutting measures, large layoffs and help from wealthy investors such as private equity entrepreneur Riaz Valani and former Hyatt board member Nick Pritzker, both of whom were linked to entities that contributed to a 2023 funding round that generated over $1 billion for Juul, The Wall Street Journal reported.
Further Reading
Juul To Pay $1.2 Billion To Settle Youth-Vaping Lawsuits (Forbes)
U.S. High School Vaping Hits 10-Year Low After Crackdown, CDC Says (Forbes)