Four-figure checks don’t fall from the sky.
But thanks to the settlement of a major class-action lawsuit involving one of America’s biggest tobacco companies, a group of e-cigarette users suddenly found themselves with a little more money on their hands.
On online forums and social media this week, users of Juul Labs’ nicotine products posted screenshots of online deposits of hundreds, or even thousands of dollars, that they now have access to.
The funding comes from two $300 million settlements between Juul and Altria, which owns 35% of Juul, for misleading consumers about the addictiveness and safety of their products. They were also charged with unlawful marketing to minors.
Mr. Artoria denies the charges, but Mr. Jules has not admitted any wrongdoing. The court has not ruled on whether the companies violated any laws.
Juul agreed to a settlement in 2022, but the Altria settlement needed to begin payments wasn’t approved until earlier this year. And it was only this month that approximately 842,000 eligible Juul customers began seeing claims.
The deadline to file a claim has already passed.
After deducting fees, taxes and contingencies, eligible claimants were entitled to a total of approximately $202 million. Average billing amounts were not immediately available. Payments were based in part on how many receipts Juul users could produce as proof of purchase.
Attorneys representing the plaintiffs did not respond to requests for comment.
E-cigarettes remain mired in controversy in the United States, as e-cigarette companies and federal regulators continue to haggle over the products’ health effects and marketing guardrails. In June, the Food and Drug Administration reversed an earlier ruling that effectively banned Juul products, but stopped short of authorizing full sales pending new health research and additional review of case law.