Users of Juul vaping products have begun receiving financial compensation through Venmo after major class-action lawsuit settlements against Juul Labs and Altria Group. The final settlement was reached earlier this year.
What Happened: The lawsuits accused Juul and Altria of misleading consumers, particularly targeting young users, about the risks and addictiveness of their products. Juul and Altria were required to pay $255 million and $45.5 million, respectively. A federal judge in California approved the distribution of nearly $202 million in early October, which was the remaining amount after taxes and other expenses, The Washington Post reported on Wednesday.
The funds are being distributed among 842,000 valid claims, with payouts varying based on the amount claimants could prove they spent on Juul products. The minimum payout for eligible claims was $15. The deadline for submitting claims has already passed.
Social media users have shared their experiences of receiving payments, with some expressing surprise at the unexpected financial windfall. One social user reported receiving nearly $3,000.
“Vaping actually paid off with this one,” the user wrote on X.
Juul Labs clarified that the payments are being handled by a settlement trust, not the company itself.
Why It Matters: The settlement marks a significant moment in Juul’s ongoing legal and regulatory challenges. In June 2022, the FDA temporarily banned Juul’s e-cigarettes due to public health concerns, prompting Juul to appeal and submit a new application for menthol-flavored pods with stringent age checks.
The FDA later reconsidered its marketing denial orders, returning Juul’s applications to pending status. Meanwhile, the company’s dramatic rise and fall have been chronicled in Netflix’s docuseries “Big Vape: The Rise and Fall of Juul,” highlighting its aggressive marketing to teens and the resulting vaping crisis.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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