Altria To Pay $235M To Resolve Juul-related Cases

Altria To Pay $235M To Resolve Juul-related Cases

Introduction

Altria Group Inc. said that it will pay $235 million to resolve at least 6,000 lawsuits alleging that it caused the adolescent vaping pandemic by investing in Juul Labs Inc. in the past.

The settlement puts a stop to the majority of the lawsuits filed by Americans and local governmental entities around the country against the tobacco giant over Juul. It happened immediately after the San Francisco public school district's jury trial, which will now be shortened, in which it presented its case against the corporation.

In a statement, one of the litigation's top plaintiffs' attorneys said that the settlement will offer remarkable and profound relief to children, parents, and governmental organizations across the country.

Altria plans to remove a pre-tax charge of $235 million from adjusted earnings per share that it expects to generate in the second quarter of 2023.

The executive vice president and general counsel of Altria stated that we still think the accusations made against us are unfounded. In our opinion, this resolution serves the interests of our shareholders best while avoiding the ambiguity and expense of a drawn-out litigation procedure.

In March, the business said that it had given up its 35% ownership of Juul in return for licenses to parts of the company's intellectual property. Its stake in Juul was valued at $250 million as of December, down from $12.8 billion in 2018.

The lawsuit's plaintiffs said that Juul targeted teens with its sweet flavors and eye-catching social media ads. They said Altria supported the plan by allowing Juul to utilize its sales team and stock its products alongside Altria's on shelves.

Juul already settled the majority of the lawsuits brought against it, paying $1.7 billion to individuals and local governments and more than $1 billion to 48 states and territories.