Altria Group said Wednesday that it can pay $235 million to settle at the very least 6,000 lawsuits accusing it of fueling a teen vaping epidemic through its former investment in e-cigarette maker Juul Labs.
The deal ends nearly the entire litigation brought against the maker of Marlboro cigarettes over Juul by local government bodies and individuals across the US.
It got here shortly after San Francisco’s public school district finished presenting its case against the corporate in a jury trial, which can now be cut short.
Sarah London, considered one of the lead attorneys for plaintiffs within the litigation, in a press release said the deal would “provide extraordinary and truly meaningful relief for youth, parents, and governmental organizations nationwide.”
Altria expects to record a pre-tax charge of $235 million within the second quarter of 2023 and intends to exclude it from adjusted earnings per share.
“While we proceed to consider the claims against us are meritless, we consider this settlement avoids the uncertainty and expense of a protracted legal process and is in one of the best interest of our shareholders,” said Murray Garnick, Altria’s executive vp and general counsel.
Altria in March announced that it had given up its 35% stake in Juul in exchange for licenses to a few of Juul’s mental property. REUTERS
The deal ends nearly the entire litigation brought against the tobacco giant over Juul by local government bodies and individuals across the US. AP
The corporate in March announced that it had given up its 35% stake in Juul in exchange for licenses to a few of Juul’s mental property.
As of December, its share of Juul was valued at $250 million, down from $12.8 billion in 2018.
Plaintiffs within the lawsuits claimed that Juul marketed to teenagers with sweet flavors and flashy social media campaigns.
They said Altria helped the strategy by letting Juul use its sales force and place its products next to Altria’s on shelves.
Juul previously settled a lot of the cases against it, paying greater than $1 billion to 48 states and territories and $1.7 billion to individuals and native government entities.
