Juul, the maker of popular vaping products, has agreed to settlements that will end more than 5,000 lawsuits filed in California.
The financial terms of the settlement were not disclosed, but a spokesperson for Juul told The Associated Press that the company had secured an equity investment to pay for it.
The settlement will cover more than 5,000 lawsuits and approximately 10,000 individual plaintiffs, The Wall Street Journal reported.
The settlement includes compensation for people suffering from nicotine addiction and other health problems, as well as reimbursement to plaintiffs who purchased Juul products, The Washington Post reported. Some of the money will also be given to school districts, cities, counties and Native American tribes to fight nicotine addiction among children.
An attorney representing 60 of the school districts involved in the litigation told Reuters the settlement was a “tremendous victory for school districts burdened by the vaping epidemic.”
“These settlements represent a major step toward strengthening Juul Labs’ operations and securing the company’s path forward,” a company spokesperson told the AP in a statement.
Juul became popular for its e-cigarettes that featured flavors like mango, mint and creme brulee, the AP reported. Many parents, politicians and school administrators blamed the company for a rise in underage vaping.
In September, Juul Labs settled an investigation by 33 states for $438.5 million, The New York Times reported. The investigation centered on accusations that the company used flavors and young models to attract underage children to its products.
Juul’s products were briefly banned in June when the U.S. Food and Drug Administration said the company failed to show that the sale of its products was appropriate for public health, Reuters reported. The ban was put on hold following an appeal, pending an additional review of Juul’s marketing application.
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