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Juul Labs will pay Arizona $14.5 million to settle a consumer fraud lawsuit.
The E-cigarette giant also vowed not to market to young people in the state.
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The settlement was announced Tuesday by Attorney General Mark Brnovich.
“Today’s settlement holds Juul accountable for its irresponsible marketing efforts that pushed Arizona minors toward nicotine and the addiction that follows,” Brnovich said in a statement. “Combatting the youth vaping epidemic remains a priority for our office with both our undercover Counter Strike program and zero tolerance for vaping companies that mislead or deceive.”
Juul said in its own statement that it will “continue working with federal and state stakeholders to advance a fully regulated, science-based marketplace for vapor products.”
JUUL PAYS $40M IN NORTH CAROLINA VAPING LAWSUIT
Juul admitted no wrongdoing in settling the case and called it “another step in our ongoing effort to reset our company.”
This is the second settlement Juul has reached with state prosecutors.
In June, it reached a similar deal with North Carolina’s attorney general that included a $40 million payment and promises not to market to minors and boost enforcement of retailers that sell its products. Lawsuits with a handful of other states remain.
All but $2 million of the $14.5 million Arizona settlement will be used for programs that discourage use of vaping products.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MO | ALTRIA GROUP, INC. | 44.24 | +0.25 | +0.57% |
The agreement requires Juul not to advertise near schools or target anyone under 21 and to not use social media to market. It is not advertising at all.
The other $2 million will go into a state account the attorney general uses to fund consumer fraud investigations.
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The company, which is partly owned by tobacco giant Altria Group, said it is in discussions to settle lawsuits filed by other states.
The Associated Press contributed to this report.