E-cig maker pay $462M to New York, California

The embattled e-cigarette maker Juul Labs Inc. will pay $462 million to settle lawsuits filed by six states and the District of Columbia.

Juul settled cases with California, Colorado, Illinois, Massachusetts, New Mexico and New York over allegations the e-cigarette maker marketed to underage vapers.

The company, which denied any wrongdoing, said it is “nearing total resolution” of legal claims and that it has settled with 47 states and territories for over $1 billion.

Today’s settlement, announced by New York Attorney General Letitia James and California Attorney General Rob Bonta, is the largest settlement with states announced to date. The settlement requires Juul to place its products behind retail store counters and verify the age of consumers that sell or promote products online.

Survey:More than 2.5 million middle and high school students still vape, despite crackdowns

California will receive the largest payment, $175.8 million. New York will get $112.7 million. Both states said the funds will be used on programs to support youth vaping prevention efforts.

“Where I see my son and daughter, Juul simply saw dollar signs,” said Bonta in a press conference Wednesday.

James said Juul took a “page out of big tobacco’s playbook” and misled consumers about the health risk of their products.  

“The e-cigarette company falsely led consumers to believe that its vapes were safer than cigarettes and contained less nicotine,” James said Wednesday. “However, just one pod of Juul contains as much nicotine as a whole pack of cigarettes.”

In at least one New York City school, a Juul representative falsely told high school freshman that its products were safer than cigarettes, she said.

Silicon Valley-based Juul had been the most recognizable brand in vaping, and the states alleged the company targeted underage vapers. Last year, the FDA sought to ban Juul’s vaping and e-cigarette products but paused the ban less than two weeks later to allow for additional…