Payouts have commenced from a 2022 settlement involving e-cigarette company Juul and tobacco giant Altria, with users on platforms such as Reddit and X reporting receiving thousands of dollars from the $300 million settlement. According to MarketWatch, some recipients reported receiving between $60 and $3,840, with at least one posting a screenshot for as much as $9,000. The class action lawsuit alleged that Juul misled customers about the addictiveness and safety of its products, prompting them to pay more than they might have if informed accurately. The lawsuit also accused Juul of illicitly marketing to minors, which was settled with a combined payment of $245 million from Juul and $45 million from Altria.

Payouts, which were approved earlier this month, are influenced by factors such as the amount of money claimants spent on Juul products, the years of purchase, and the age at the time of purchase. Those who spent more money during eligible time frames are likely to receive higher payments. Gen Z’s reaction to these payouts was notable, with The Independent reporting that some were shocked to receive payments, with one user receiving nearly $3,500 unexpectedly.

The settlement is part of a larger legal ordeal for Juul, which faced over 8,000 lawsuits from various entities, leading to a cessation of U.S. advertising and the discontinuation of most flavours in 2019. The $300 million settlement follows a prior settlement of nearly $440 million after a multi-state investigation into its marketing practices. Juul’s legal challenges have cost the company almost $3 billion, leading Altria to withdraw its investment in favour of a rival. Juul has since avoided bankruptcy through cost-cutting, layoffs, and financial backing from investors like Riaz Valani and Nick Pritzker, who contributed to a 2023 funding round raising over $1 billion for the company. The payouts from this settlement help those affected and highlight the need for better rules in the vaping industry. As people get their compensation, it’s important to stay aware and make smart choices about what we use.

Source: Forbes