Juul's $300 Million Class Action Settlement Results in Thousand-Dollar Payouts for Some — Details

Juul Labs introduced their e-cigarette product in 2015, an appealing alternative to smoking, which they touted as less addictive and safer than cigarettes. Juul products quickly took hold of younger generations, and Juul has been accused of false marketing practices and intentionally hooking young people, facilitating an increase in vaping and nicotine addictions.

In a class action lawsuit, consumers can claim they were falsely led into buying Juul products and receive payment as compensation. Juul has faced several lawsuits since 2015, including a $462 million multi-state settlement in 2023 that put the company and their marketing practices under strict scrutiny. Here is what you should know about the Juul class action lawsuit.

In a class action lawsuit that was settled for $300 million in December 2022, Altria and Juul Labs were accused of misleading consumers, especially minors, about the addictiveness of Juul products, per Top Class Actions. Juul Labs has faced more than 5,000 lawsuits for deceptive marketing that underplayed the risks of vaping.

Juul has been sued by several people who have used its products, as well as government officials such as the Arizona Attorney General, the state of North Carolina, and Washington State, to name just a few, per Forbes Advisor.

In April 2023, Juul agreed to pay $462 million to six states and Washington D.C., the largest multi-state settlement ever seen. Juul continued to be accused of misleading marketing practices that aimed to hook the youth and led to a major rise in e-cigarette use in younger populations.

New York Attorney General Letitia James, who led the settlement alongside California Attorney General Rob Bonta, said in a press conference, "The e-cigarette company falsely led consumers to believe that its vapes were safer than cigarettes and contained less nicotine. However, just one pod of Juul contains as much nicotine as a whole pack of cigarettes," according to CNN.

The settlement required Juul to stop using people under 35 for advertisements, which increased the product's appeal to younger people. Juul also agreed to make retailers put the products behind the counter and verify that those buying are at least 21 years old, per CNN.

According to the Juul class action website, "Each claim will be based on how much each claimant spent on JUUL products compared to other Settlement Class members."

During the week of Oct. 21, 2024, users have been posting their payouts on social media — and the amounts are staggering. One user on Reddit posted that they had received roughly $1,300. Others in the comments had received varying amounts, including anywhere from $37 to $200.

According to NBC News, eligible claimants are entitled to "a total of approximately $202,000,000." Currently, there is no average payout amount available.

Those who bought a Juul product before Dec. 7, 2022, and felt that they would not have bought the product if warned about the risks were eligible as part of the class action suit. The deadline was Feb. 5, 2024, and those who filed a claim are eligible for a payment. Feb. 5 was also the deadline to opt out of the settlement.

If you did not have proof of purchase you were still eligible to file a claim, but documentation (such as a receipt) was required for purchases of $300 or more.

This article, originally published on March 12, 2024, has been updated to reflect the outcome of the settlement.