Initial Approval Given For $90 Million Settlement Between Juul, Altria, Investors Who Claim They Were Misled

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Juul, Altria Investor Class Action Settlement Overview: 

• Who: A judge has granted initial approval for a $90 million settlement between Juul Labs Inc., Altria Group Inc and a class of its investors. 
• Why: Investors claim they were injured by Juul and Altria’s alleged misrepresentations about the safety of Juul devices and their marketing to an underage demographic
• Where: The class action lawsuit was filed in Virginia federal court.

A judge has granted initial approval of a $90 million settlement agreement between Juul Labs Inc., Altria Group Inc. and a class of investors who claimed the companies intentionally marketed their vaping devices to minors. 

The settlement class consists of any individual or entity which purchased or acquired Altria securities between Oct. 25, 2018, and April 1, 2020, according to the judge’s order.

Investors claimed they were harmed by misrepresentations made by Juul and Altria about the health and safety of the Juul vaping devices and how they marketed them to underage consumers. 

Juul and Altria also misled investors about their supposed commitment to keeping their devices out of the hands of potential underage users, investors argued. 

Investors Claim Altria, Juul Assured Them That The Companies Were Only Interested In Attracting Adult Clientele 

Altria gained a 35% stake in Juul in December 2018 after the American tobacco company invested $12.8 billion in the vaping electronics company, Law360 reports.

Investors claim they were assured at that time by Altria and Juul that the companies were only interested in attracting an adult clientele; however, in reality, they were allegedly working to specifically target youth.

Further, investors claim Altria knew Juul planned on targeting youth for its vaping products at the time it received its stake in the company. 

Investors argued they were ultimately injured financially when Altria’s stock dropped following investigations by federal government agencies into Juul’s marketing tactics and the health hazards associated with its vaping devices. 

A settlement fairness hearing is scheduled for March 31 as the next step towards final approval, according to the order.

Juul and Altria both previously attempted to get the class action lawsuit dismissed, arguing the investor’s claims did not have standing. 

Sign up to join a Juul class action lawsuit investigation here (links to paid advertising). 

The plaintiffs are represented by Steven J. Toll, Daniel S. Sommers and S. Douglas Bunch of Cohen Milstein Sellers & Toll PLLC; Jeremy A. Lieberman and Michael J. Wernke of Pomerantz LLP; Samuel H. Rudman, David A. Rosenfeld, Erin W. Boardman, Douglas R. Britton, Kevin A. Lavelle, Matthew J. Balotta and Philip T. Merenda of Robbins Geller Rudman & Dowd LLP; and Brian Schall of The Schall Law Firm. 

The Juul, Altria Investor Class Action Lawsuit is Klein v. Altria Group Inc., et al., Case No. 3:20-cv-00075, in the U.S. District Court for the Eastern District of Virginia. 

Read About More Class Action Lawsuits & Class Action Settlements:

• Juul Class Actions Lodged by Two More School Districts Claiming Co Misrepresents Safety of Its Vaping Devices, Targets Youth
• $15M Awarded in Lawsuit Over E-Cig Battery Explosion Injuries
• Juul Wants School Districts To Go First In MDL Bellwether Trials Concerning Vaping Device Claims
• More Plaintiffs, Including Minors and School Districts, Join Multidistrict Litigation Against Juul