Juul Labs Inc. has settled a lawsuit that North Carolina filed against it for designing and marketing its e-cigarette products to target young people, the state’s attorney general and the company told a judge on Monday.
Juul has agreed to pay the state $40 million as part of the settlement, Atty. Gen. Josh Stein said at a news conference after the hearing.
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Juul’s popularity has ballooned in recent years, with the company coming to dominate the e-cigarette market. That success landed it in the cross-hairs of federal regulators and state attorneys general who worried about Juul’s impact on teenagers.
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North Carolina became the first state to sue Juul for allegedly advertising to minors, in May 2019. The company’s practices helped create “an epidemic among minors,” according the state’s complaint.
Juul had no immediate comment on the settlement.