Topline

Payouts from a 2022 settlement between e-cigarette company Juul and tobacco company Altria have begun, with users on platforms like Reddit and X claiming they received thousands of dollars from the $300 million settlement.

Important facts

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Is it too late to claim a settlement?

Yes: The deadline to file a claim was February 5th.

How are payouts calculated?

Some factors affect payouts, including how much money applicants spent on Juul products, what year they purchased the products and what age they were when they purchased the products. It appears that those who spent more money on Juul products during the eligible periods will receive larger payouts.

Important background

The class action lawsuit arose from more than 8,000 lawsuits filed by municipalities, school districts, Native American tribes and individuals against Juul, which halted U.S. advertising and discontinued most of its flavors in 2019 following litigation and government sanctions. The $300 million settlement followed a nearly $440 million settlement following a federal investigation into its marketing practices. The litigation cost the company nearly $3 billion last year when Altria, which invested nearly $13 billion in Juul in 2018, pulled out of the e-cigarette company and invested in a rival startup. Since then, Juul has avoided bankruptcy through cost-cutting measures, large layoffs and the help of wealthy investors such as private equity entrepreneur Riaz Valani and former Hyatt board member Nick Pritzker. Juul has raised $1 billion for Juul, the Wall Street Journal reported.

Further reading

Juul to pay $1.2 billion to settle youth vaping lawsuits (Forbes)

CDC says e-cigarette use in US high schools reaches lowest level in 10 years after crackdown (Forbes)