Products Liability Law Reporter

After the state of Minnesota began experiencing a significant decline in youth tobacco use, e-cigarette use by children began to rise, negating the state’s progress in combatting youth tobacco use.

In 2019, the state sued JUUL Labs, Inc., and later, Altria Group, Inc., which reportedly had acquired a 35% share of JUUL. The state alleged claims for consumer fraud, deceptive and unlawful trade practices, false statements in advertisement, public nuisance, negligence and negligence per se, and unjust enrichment.

At trial, the state showed the jury how JUUL had launched a “Vaporized” marketing campaign that appealed heavily to youth, designed flavors and designs attractive to youth, and advertised JUUL flavors directly to teen users.

The parties settled with the defendants for $60.5 million. Under the terms of the settlement, the defendants are required to pay $22.75 million within 30 days and another $12.75 million by March 2024. Additionally, the defendants must publish their internal documents related to the litigation in a public document depository. The settlement also imposes conduct restrictions, including requiring JUUL to accurately disclose the nicotine content of its products and prohibiting JUUL from marketing and selling to children and young adults, using outdoor advertising in Minnesota, and distributing product samples.

Citation: State v. JUUL Labs, Inc., No. 27-CV-19-19888 (Minn. Dist. Ct. Hennepin Cnty. May 16, 2023).

Plaintiff counsel: Keith Ellison, James Canaday, Adam Welle, Eric J. Maloney, and Jason Pleggenkuhle, all of St. Paul, Minn.; and AAJ member Tara D. Sutton, AAJ Munir R. Meghjee, AAJ member Holly H. Dolejsi, AAJ member Carolyn G. Anderson, June P. Hoidal, and Behdad C. Sadeghi, all of Minneapolis.