Juul Labs Inc. has agreed to pay $1.2 billion to resolve about 10,000 lawsuits targeting the e-cigarette maker as a major cause of a U.S. youth-vaping epidemic, Bloomberg News reported Friday, citing people familiar with the matter.
Last week Juul said it had settlements with about 10,000 plaintiffs covering more than 5,000 cases in California.
“These settlements represent a major step toward strengthening Juul Labs’ operations and securing the company’s path forward,” a company spokeswoman said in a statement.
Attorneys for the plaintiffs said in a statement the deal would “put meaningful compensation in hands of victims and their families,” and provide schools and local governments with funding for anti-vaping education programs. A judge is expected to soon review and approve the settlement.
Juul rocketed to the top of the U.S. vaping market five years ago on the popularity of flavors like mango, mint and creme brulee. But the startup's rise was fueled by use among teenagers, some of whom became hooked on Juul’s high-nicotine pods.
Juul did not immediately respond to a Reuters request for comment.
© 2024 Thomson/Reuters. All rights reserved.