A California federal judge tossed plaintiffs’ claims surrounding RICO violations in a Juul seizure multidistrict litigation accusing Juul Labs of aiming its e-cigarette product advertising at teenagers, but allowed the other claims in the case to proceed.

U.S. District Judge William Orick for the United States District Court for the Northern District of California said in his lengthy Oct. 23, 2020 decision on Juul Labs’ motion to dismiss that “more specific allegations” were needed to support RICO claims made against Juul Labs’ stakeholder, Altria Group, Inc., allowing the class 20 days to amend their complaint.

However, Judge Orrick didn’t find that the claims made by the plaintiffs, other than those concerning the failure to disclose the addictiveness of nicotine on Juul Labs’ product labels, should be preempted by the FDA’s regulatory authority, and allowed the rest of the state law claims asserted in the case to be heard.

What Were the Claims in the Juul Labs Multidistrict Litigation?

The multidistrict litigation involves putative class actions brought by consumers, in addition to actions brought on behalf of government entities and school districts. The plaintiffs in the litigation assert claims that Juul targeted teenagers with its “kid-friendly” flavors, and raised claims that the e-cigarette company violated a number of consumer protection laws, in addition to alleging RICO violations.

The complaint pleads 19 causes of action surrounding the controversial vaping products and Juul Labs’ marketing practices, including strict liability for manufacturing defects and negligent design, negligent misrepresentation, fraud, and wrongful death.

The plaintiffs in the multidistrict litigation raised RICO claims contending that Juul Labs, Altria, and the members of the Board of Directors named in the suit formed “an association-in-fact enterprise — the Nicotine Market Expansion Enterprise” and that they “created and maintained systematic links for a more nefarious common purpose: maintaining and expanding the number of nicotine-addicted e-cigarette users in order to ensure a steady and growing customer base, including by maintaining and expanding JLI’s massive, and ill-gotten, share of the e-cigarette market.”

The plaintiffs asserted that the purpose of the “Enterprise” was to entice people — especially minors – to become addicted to nicotine. As part of the alleged expansion, the multidistrict litigation plaintiffs purported that Juul Lab’s advertising was aimed at young adults and the company coordinated with Altria to make misleading statements to the FDA about the tobacco content in its mint flavored cigarettes. Plaintiffs also argued that Juul Labs and the other defendants were engaged in racketeering as well as a scheme to defraud.

While Judge Orrick found that the multidistrict litigation plaintiffs failed to set forth an adequate claim for racketeering, he still allowed the plaintiffs’ claims concerning allegations that the e-cigarette company made misleading statements in an effort to encourage youth use of its products to move forward.

Does Juul Advertising Target Teenagers?

Juul e-cigarettes and the company’s marketing practices have been subject to significant controversy over the last several years.

According to statistics published by NPR, 28% of high schoolers used Juul in 2019, compared with a little over 10% in 2016, with an estimated total of 5.3 million teens vaping.

A study conducted by researchers at the Stanford University School of Medicine found that in the first six months Juul was on the market, the company’s advertising was “patently youth oriented.”

Although the e-cigarette company muted its youth focused advertising over the following 2 ½ years, Juul’s marketing regularly garnered attention on social media platforms used by young adults. According to the study’s conclusion, Juul’s “repeated assertion that their product is meant for ‘adult smokers only’ has not been congruent with its marketing practice over its first 3 years.”

To appeal to teenage consumers, the researchers found that Juul used hashtag marketing as part of its Instagram strategy and sponsored youth-oriented entertainment events to distribute samples of its products. The photography from the events demonstrated a “definite youthful and rock music theme,” according to the findings in the published white paper.

Allegedly, Juul shifted its youth-focused advertising in 2018 as controversies rose surrounding its products and marketing practices, as noted by the research findings in the white paper.

What Injuries Can Juul E-Cigarettes Cause?

A number of health conditions and lung injuries have been linked to the use of Juul e-cigarettes including EVALI, which has been shown to cause shortness of breath, chest pain, cough, gastrointestinal symptoms, fever, chills, and weight loss.

According to the CDC, these types of symptoms may appear over several weeks, or just within a few days.

Seizures have also been reported in connection with vaping.

The FDA and CDC continue to investigate respiratory illnesses connected with the use of vaping products.

The Juul Labs Multidistrict Litigation is In re: Juul Labs Inc. Marketing, Sales Practices & Products Liability Litigation, 19MD- 02913, United States District Court for the Northern District of California.

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This article is not legal advice. It is presented 
for informational purposes only.