Juul Labs faces a hefty price tag for its alleged deceptive marketing practices as consumers receive substantial payouts from a $300 million class action settlement.
At a Glance
- Juul Labs’ $300 million class action settlement payouts are being distributed
- Some recipients are receiving unexpectedly large amounts, with reports of payouts over $9,000
- The lawsuit alleged Juul misled customers about the safety and addictiveness of its products
- Court authorized payments totaling $201.9 million for approximately 842,000 valid claims
- Claims were eligible for those who purchased Juul products before December 7th, 2022
Substantial Payouts Reach Consumers
The long-awaited distribution of Juul Labs’ $300 million class action settlement is underway, with some consumers receiving unexpectedly large payouts. Reports indicate that some individuals are receiving amounts exceeding $9,000, while others have seen payments of $6,200 and $4,600. These substantial sums are linked to consumers who provided receipts for their Juul product purchases, reflecting significant spending on vaping devices and related items.
The class action lawsuit that led to this settlement accused Juul of misleading customers about the safety and addictiveness of its products. The legal action claimed that consumers would not have invested as heavily in Juul products had they been aware of the associated risks.
Settlement Details and Eligibility
The settlement agreement involves not only Juul Labs but also Altria, a major investor in the company. While Juul agreed to a $255 million settlement, Altria committed to paying an additional $45 million. The court has authorized payments totaling $201.9 million to be distributed among approximately 842,000 valid claims.
“As noted in a legal filing, the court authorized payments totaling $201.9 million for around 842,000 valid claims,” The Verge reported.
Eligibility for these claims was extended to individuals who purchased Juul products before December 7th, 2022. This wide window of eligibility has allowed a significant number of consumers to seek compensation for their purchases.
The settlement and subsequent payouts highlight the serious consequences of alleged misleading marketing practices in the e-cigarette industry. Juul Labs, once a dominant force in the vaping market, has faced numerous legal challenges and regulatory scrutiny over its marketing tactics, particularly those that critics say targeted young consumers.