Juul & Altria $90 Million Settlement to Investors Claiming to Be Misled Gets Initial Approval
A judge has granted initial approval to a $90 million settlement agreement between Juul Labs Inc., together with Altria Group Inc., and a class of investors claiming that the companies intentionally marketed their vaping devices to minors.
Investors Injured Owing to Juul and Altria Alleged Misrepresentation
According to the judge’s order, the Juul & Altria Investors Settlement class includes any individual or entity that acquired or purchased Altria securities between October 25, 2018, and April 1, 2020.
Investors asserted that Juul and Altria’s misrepresentations harmed them regarding the health and safety of Juul vaping devices and its marketing to underage users.
Additionally, investors claimed that Juul and Altria misled them about their declared commitment to getting their devices out of the hands of possible underage users.
Altria acquired a 35% stake in Juul in December 2018 following a $12.8 billion investment in the vaping electronics business.
About the Lawsuit
Investors claim they were informed at the time by Altria and Juul that the duo was solely focused on adult customers; nonetheless, they were allegedly working to aggressively target minors.
Additionally, investors assert that Altria was aware that Juul planned to offer its vaping devices to minors when it acquired a stake in the company.
Investors contended that they were eventually financially injured when Altria’s stock fell as a result of federal government investigations into Juul’s marketing practices and the health risks associated with its vaping devices.
According to the ruling, the next step toward final approval is a Juul & Altria Investors Settlement fairness hearing scheduled for March 31.
Juul and Altria earlier moved to dismiss the class action lawsuit, alleging that the investor’s claims lacked standing.
Editor’s Note on Juul & Altria Investors Settlement:
This article is written to inform you of the class action lawsuit lodged against Juul and Altria for allegedly misleading investors over the marketing of their vaping devices. We also suggest you read the 7-Eleven E-Vape Lawsuit.
Case Name & No.: Gabby Klein v. Altria Group Inc., et al., Case No. 3:20-cv-00075
Jurisdiction: U.S. District Court for the Eastern District of Virginia
Allegations: Juul and Altria allegedly misled investors regarding the marketing of their vaping devices
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