Juul e-cigarettes became a household name in the late 2010s. E-cigarette vaporizers, or “vapes,” were often promoted as a healthier alternative to traditional cigarettes or even as a way to quit.
Pax Labs developed the Juul e-cigarette, and in 2017, Juul Labs became its own company. One of Juul’s distinctive features is its compact size, which allows users to bring it anywhere discreetly. The “pods,” which contain vape oil and nicotine, attach to the battery and previously came in fruit and other appealing flavors. However, after facing FDA bans and restrictions, dozens of lawsuits over predatory marketing, and now lawsuits over lung injuries, the future of Juul is anything but certain.
Concerns Over Juul E-Cigarette Safety
The flavored pods and discreet design attracted not only adults trying to quit smoking but young people and teenagers who saw the device as a safe alternative to smoking traditional cigarettes. Vaping, as well as slang phrases like “hit the Juul,” became more and more popular among teenagers, both online in places like Twitter and TikTok and in home and classroom settings. Parents and health professionals began to raise concerns about the levels of vaping among high schoolers.
The primary concerns were simple: the long-term consequences of vaping were not yet known, but many young people were vaping on a daily basis. Moreover, there is 20 times the nicotine in a vape pod as a cigarette, making it more addictive. Some were developing nicotine addictions, while the fruity flavors continued to reel in new customers, and schools struggled to figure out how to curb the habit on school grounds.
What is EVALI?
EVALI is e-cigarette or vaping-associated lung injury in which the lungs sustain serious damage. Around the beginning of the 2019-2020 school year, emergency rooms saw a sharp uptick in cases of e-cigarette or vaping-associated lung injury (EVALI). Some people hospitalized with EVALI reported using vapes with THC, the active component in marijuana, while others reported using nicotine vapes like Juuls.
EVALI causes concerning symptoms, including:
- Shortness of breath
- Coughing
- Chest pain
- Nausea and vomiting
- Fever
- Weight loss
Some patients report developing EVALI over the course of weeks or months, while others report symptom onset within days of picking up their first vape.
FDA Responds to Juul Safety Concerns
As EVALI cases continued to rise into September 2019, the illness received extensive news coverage. Cases ranged from mild cough to documented fatalities, and concerns about this new danger began to impact the public perception of Juul and e-cigarette safety.
The FDA responded to the concerns about the use of Juul by banning the sale of flavored e-cigarette pods, allowing manufacturers to sell only tobacco and menthol flavors. This move was an attempt to make Juuls and similar products less appealing to children and teens, with the FDA also stating that e-cigarette companies may not market their products to minors.
The FDA’s Attempt to Ban Juul
In June 2022, the FDA announced that all remaining Juul products (the battery/device itself and the tobacco and menthol pods still being sold) must be removed from the market, essentially banning them in the United States. The ban followed nearly two years of research on e-cigarette safety and the effects of vaping on the lungs.
However, the ban was quickly blocked the next day by a federal appeals court and the FDA relented temporarily, allowing Juul to continue sales pending further review. Juul Labs responded with a September 2022 lawsuit after the FDA refused to disclose the research behind the ban.
Juul’s Legal Issues
Juul Labs is no stranger to litigation. Lawsuits were filed against the company by 34 states over what many considered to be its predatory marketing practices aimed at minors. Juul settled those lawsuits for a total of $438.5 million. The cases involving lung injuries and EVALI diagnoses are a separate matter. Numerous lawsuits have been filed and have since been consolidated in multidistrict litigation (MDL) in Northern California.
The Financial Fall of Juul
Despite its strong start in the market, Juul’s financial status has fallen into a much worse state. More than 50 percent of the staff has been cut since the company’s peak in 2019. Smoking cessation company Altria, which had invested $12.8 billion in Juul in 2018 and signed a non-compete clause at that time, was released from that clause after the value of their investment dropped to $450 million – about 3.5 percent of the original value.
On top of that, campaigns like The Real Cost began to pop up to discourage kids from vaping, further shifting public opinion and lowering sales. All of these factors have put Juul into such a dire financial situation, sources say the company may have to consider filing for bankruptcy.
What’s Next for Juul?
Despite the multimillion-dollar settlement over its marketing practices, Juul Labs is still facing thousands of lawsuits regarding the health effects of its products. The illnesses and injuries brought forward by claimants include seizures, strokes, injuries to the lungs, and a buildup of scar tissue in the lungs commonly referred to as “popcorn lung.”
Sources say that additional financing from investors allowed Juul Labs to narrowly avoid filing for Chapter 11 bankruptcy in November 2022. Filing for Chapter 11 bankruptcy would have given Juul the chance to recapitalize and emerge from bankruptcy, at which point litigation would likely resume. While bankruptcy is no longer an immediate threat for the company, layoffs may be on the horizon.
Filing a Lawsuit after a Juul Injury
If your minor child has experienced adverse health effects linked to Juul use, you may be able to file a lawsuit against the company. Our team can review your case details and advise you on your legal options. Contact us today through our website for a free case evaluation.
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