Juul Labs settles 10,000 lawsuits in settlement

103
1
Juul Labs settles 10,000 lawsuits in settlement

Juul Labs reached a settlement that covers more than 5,000 lawsuits and about 10,000 individual plaintiffs, ending legal uncertainty for the e-cigarette company.

Financial terms were not disclosed.

Juul secured an equity investment to cover the cost of the settlement, according to the Wall Street Journal.

Juul has been in talks with investors about a financial bailout, first reported by the Journal, including longtime board members, Hyatt Hotels heir Nick Pritzker and California investor Riaz Valani.

In our ongoing fight for our company and mission, today s news represents another important step to secure our path forward, Juul Chief Executive K.C. Crosthwaite wrote a memo to staff Tuesday.

He said the settlement addresses the vast majority of outstanding litigation facing our company. Juul was accused of marketing to children and teens.

Juul has never targeted young people, but has been working to regain the trust of the public.

The settlement covers two trials that were due to go to court early next year, as well as four broad groups including personal injury plaintiffs, Juul consumers, government entities, such as school districts, and Native American tribes.

Several attorneys general are pursuing cases that are pending.

Juul announced last month it would lay off about a third of its staff and secured funding from some early investors to stave off the bankruptcy.