JUUL Labs Inc. will pay the state of Alabama up to $15.5 million after the e-cigarette company settled a lawsuit brought by numerous states and territories over its marketing practices toward teenagers.
The Alabama Office of the Attorney General will receive the amount from JUUL over ten years and hopes to use it for law enforcement funding, according to a spokesman for Alabama Attorney General Steve Marshall.
"The State of Alabama is a party to the 37-state, $438.5 million national settlement against JUUL for their ad campaign targeting teens," Mike Lewis, Marshall's spokesman, told 1819 News on September 7. "The Attorney General's Office is expected to receive up to $15.5 million spread over ten years from the settlement. The AG intends to work with state appropriators to get the money into the hands of law enforcement."
According to a press release by Texas Attorney General Ken Paxton on September 6, the $438.5 million agreement in principle between JUUL Labs and 34 states and territories resolves a two-year bipartisan investigation into the e-cigarette manufacturer's marketing and sales practices. Paxton initially launched the investigation in 2020.
According to Paxton, states are in the process of finalizing and executing the settlement documents.
The $438.5 million would be paid out over a period of six to 10 years, with the amounts paid increasing the longer the company takes to make the payments. If JUUL chooses to extend the payment period up to 10 years, the final settlement will reach $476.6 million.
According to Paxton, the agreement also includes strong marketing, sales and distribution restrictions, including restrictions on marketing to persons under age 35, limits on in-store displays and access, online sales limits, retail sales limits, age verification requirements on all sales and a retail compliance check protocol.
The following states and territories are receiving funds in the settlement: Alabama, Arkansas, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Maryland, Maine, Mississippi, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, Nevada, Ohio, Oklahoma, Oregon, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Wisconsin and Wyoming.
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