New York Attorney General Letitia James announced a $462 million multistate settlement with Juul on Wednesday for causing a "nationwide youth vaping epidemic," making it the largest multistate settlement with the company.
The payout will settle lawsuits from six states and the District of Columbia that alleged the e-cigarette company marketed its vaping products to underage users. New York alone is set to receive $112 million over an eight-year period, with $14 million arriving in the next 90 days, James said in a press briefing.
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She was joined by attorneys general from Illinois, California, the District of Columbia, and Massachusetts, four of the seven recipients of the lawsuit settlements.
"Juul misled consumers about the health risks of their products. Juul targeted youth by glamorizing vaping with colorful ads featuring young models at flashy parties in New York City and the Hamptons, all while downplaying the harmful effects of vaping," New York's attorney general said.
James said the company engaged in direct outreach to youth, citing at least one instance where a Juul representative told New York high school freshmen that its items were safer than regular cigarettes — one pod used in vaping products, however, has as much nicotine as one pack of cigarettes.
"Juul's lies led to a nationwide public health crisis and put additive products in the hands of minors who thought they were doing something harmless. There is no doubt that Juul played a central role in the youth vaping epidemic. Today, Juul is paying for the widespread harm it caused and will undergo severe restrictions on its marketing and sales practices," James said.
The $400 million settlement will resolve nearly all the pending legislation. The agreement prevents Juul from directly or indirectly targeting youth in its marketing or portraying anyone under 35 in the company's videos.
"This agreement will protect our kids and help future generations understand the harms of vaping and nicotine and foster healthier and thriving communities in New York and across the country," James said.
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This is not the vaping product company's first settlement payout. Last September, Juul agreed to pay at least $438.5 million in a settlement with 33 states and Puerto Rico and also agreed to pay $1.7 million to resolve over 5,000 lawsuits in December.
“With this settlement, we are nearing total resolution of the company’s historical legal challenges and securing certainty for our future,” a Juul spokesman said to the Wall Street Journal.