Texas will receive $42.8 million in the settlement, which includes 33 U.S. states and territories, according to a Sept. 6 news release.
Texas Attorney General Ken Paxton launched the investigation in February 2020, alongside the attorneys general of Connecticut and Oregon. According to the release, the investigation revealed that Juul Labs intentionally marketed its products to youth.
Juul promoted its products to young people through launch parties, social media posts and more, according to the investigation. The company also sold its e-cigarettes in flavors that appealed to younger buyers, such as mango, cucumber and mint. Most flavors were discontinued between 2018-2020.
Juul’s original packaging was misleading, the news release said, because it implied that the products contained little to no nicotine.
“When I launched this investigation over two years ago, my goal was to make sure [Juul] was held liable for any wrongdoing done in the past and ensure that they change direction to fully comply with the law going forward,” Paxton said in the release.
Under the settlement, Juul Labs must follow specific restrictions, including limits on marketing to people under 35 years old, limits on in-store displays, required age verification for all sales and more.
The 33 states and territories will receive $438.5 million over six to 10 years, according to the release. If Juul Labs extends the payment period to 10 years, stakeholders could receive as much as $476.6 million.
Over the next few weeks, the settlements will be finalized, and more information will be released about how the funds will be used, Paxton’s office told Community Impact Newspaper via email.
“We remain focused on the future as we work to fulfill our mission to transition adult smokers away from cigarettes—the No. 1 cause of preventable death—while combating underage use,” Juul Labs said in a Sept. 6 statement.
The states and territories involved in the settlement are: Alabama, Arkansas, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Maryland, Maine, Mississippi, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, Nevada, Ohio, Oklahoma, Oregon, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Wisconsin and Wyoming.
