Juul to settle claims by nearly 10,000 plaintiffs

E-cigarette maker Juul Labs said on Tuesday it had reached settlements with about 10,000 plaintiffs covering more than 5,000 cases in California.

Juul did not disclose the settlement amount as part of the settlement and court process in the federal multidistrict litigation and related Juul Labs product cases. The company has obtained equity investment to fund it, a spokesperson said in a statement.

Philip Federico, a lawyer representing 60 school districts in the US in the litigation against Juul, said the settlement is a “tremendous victory for school districts burdened by the vaping epidemic”, adding that funds from it will allow school districts to recover the costs of combating the epidemic.

Partly owned by Altria Group, Juul had in September agreed to pay $438.5m to settle claims by 34 US states and territories that it downplayed its products’ risks and targeted underage buyers.

In November, Juul said it had secured an investment from some of its early investors that will keep the e-cigarette maker in business. It is also planning to lay off about 400 people and reduce operating budget by 30%-40%.

The company’s e-cigarettes were briefly banned in the country in late June, after the US Food and Drug Administration (FDA) concluded that it had failed to show that the sale of its products would be appropriate for public health.

But after an appeal, the health regulator put the ban on hold and agreed to an additional review of Juul’s marketing application.