The US e-cigarette maker has closed complaints thanks to settlements. Accused in particular of having targeted teenagers in its marketing strategy, Juul announced Tuesday, in a press release, that it had concluded a major settlement that closed more than 5,000 complaints filed by 10,000 people.
“Equity financing” has been secured to finance this operation, the company said. It also notes that the resolution is “global” and that it covers claims against “Juul Labs and its officers and directors,” which had been consolidated in a California court.
Some had been filed for personal injury, others in the context of consumer class action lawsuits, or by government entities or Native American tribes.
A restructuring plan and layoffs
The company is the subject of numerous complaints and is also facing a decision by US health authorities that banned the sale of electronic cigarettes in the country in June, a decision that was temporarily lifted by a Washington appeals court.
Juul has recently announced a restructuring plan with layoffs, and should be able to avoid bankruptcy thanks to a shareholder capital injection.
The US company recalls that “during the last year” it has “concluded agreements with 37 States and territories”, and ensures that it continues “discussions with other key stakeholders to resolve the remaining disputes”.
In fact, several agreements have been announced in recent months, including one in September with 34 US states or territories, involving compensation of $438.5 million.
Source: BFM TV
