Juul Agrees to Settle Thousands of Vaping Lawsuits

Facts

E-cigarette maker Juul Labs has announced it has settled more than 5K lawsuits with roughly 10K individual plaintiffs. The company added on Tuesday that it secured an equity investment to cover the settlement costs, however the financial details were not disclosed.
The settlement covers two leading cases set to go to trial next year and four broad groups, including personal injury plaintiffs, Juul consumers, government entities like school districts, and Native American tribes. Lawsuits brought by several attorneys general are still pending.
The announcement follows a $438.5M settlement in September with 34 states and territories, after an investigation that found Juul had deliberately marketed to young people through the use of young-looking models and by selling flavors with appeal to a younger demographic, like mango, fruit, and mint.
Despite the progress marked by this settlement — the charges around which included accusations ranging from racketeering to fraud — Juul's problems are far from over. The company is still awaiting an FDA decision regarding permanent authorization to sell its products, a decision that was put on hold after Juul received a temporary court reprieve in June.
Philip C. Federico, an attorney representing 60 school districts, said litigation will also continue against tobacco giant Altria, which is a partial owner of the e-cigarette company.
Though Juul — which became famous in 2018 when sales of its vape devices surged — hasn't disclosed how it will pay the settlement, it's been in bailout talks with two of its longtime board members, Hyatt Hotels heir Nick Pritzker and California investor Riaz Valani.

Sources: FOX News, Wall Street Journal, CNN, New York Times, and Washington Post.

Narratives

Narrative A, as provided by Fool. Not only should Juul be severely penalized through fines, but the fraudulent company should face criminal RICO charges now that we know it was aware of the deceptive nature of its marketing. Children who would otherwise have never smoked have become dangerously addicted. Hopefully this is one of the final steps toward abolishing the e-cigarette industry.
Narrative B, as provided by Buzzfeed. While restricting teens' access to vapes should be a priority, if the government decides to banish Juul from the market it could lead to former smokers returning to old habits. The FDA should consider the needs of both young non-smokers and older former smokers before making any sweeping decisions.