Juul To Settle Youth-Vaping Lawsuits With Payment Of $1.2B

Juul Labs Inc, backed by Altria Group MO, will pay $1.2 billion to resolve about 10,000 lawsuits alleging the e-cigarette maker was a major cause of a U.S. youth-vaping epidemic.
The accord was announced on Tuesday, but an amount wasn’t disclosed. It is yet to be finalized, Bloomberg reported.
The deal aims to resolve all personal injury, class-action, and school-district claims against Juul gathered before a judge in San Francisco.
Wednesday, Juul Labs reached settlements with about 10,000 plaintiffs covering more than 5,000 cases in California. The company has obtained equity investment to fund it.
Juul had agreed to pay $438.5 million in September to settle claims by 34 U.S. states and territories.
Some investors have invested in Juul Labs Inc to stave off the proposed bankruptcy it had been preparing amid a dispute with the FDA over whether its products can remain on the U.S. market.
Price Action: MO shares are down 0.28% at $46.73 on the last check Friday.
Photo via Wikimedia Commons