Customers ‘Shocked’ by Hefty Juul Settlement Payouts

Howard Feinstein wasn’t expecting much when he submitted his information to a lawsuit against Juul Labs that accused the vaping company of misleading customers about the addictiveness and safety of their products. Then more than $3,000 (£2,320) hit his bank account. “I thought it was fake at first,” said the 55-year-old real estate agent, who lives in Washington state. “I was absolutely shocked.”

The payment to Mr Feinstein this week was one of more than 800,000 that the company is making to former customers as a result of a more than $300m court settlement finally approved earlier this year. The payouts range from $15 to more than $10,000, with an average of about $240, said Dena Sharp of the San Francisco law firm Girard & Sharp, who was the lead attorney on the case.

Administrators of the settlement, which involved Juul and tobacco giant Altria, which previously held a sizable stake in the company, started mailing checks late last week. Electronic payments began on Monday. MS Sharp said more payments would be sent out over the next few days. MS Sharp said more payments would be sent out over the next few days.

More than 14 million people submitted claims to the court, of which only about 842,000 were officially validated. MS Sharp said the court followed a careful process to winnow the claims, looking for duplicates, signs of fraud and proof of purchase.

About a quarter of the recipients purchased directly from the company, making their eligibility easier to verify, she said. The lawsuit alleged two things: that Juul customers paid more for the product than they would have had they been provided with accurate information about its addictiveness and safety, and that the products were unlawfully marketed to minors.

The court did not decide whether either firm violated any laws. In a statement, Juul Labs said they are “pleased to have resolved the vast majority of the company’s past legal issues and are focused on advancing our mission”, which they added included reducing the use of their products by underage users.

Many of the people receiving payouts, like Mr Feinstein, have been pleasantly surprised by the sums, and have taken to social media to celebrate their haul. “The money couldn’t have come at a better time so I’m really grateful that they’re following through,” Mr Feinstein said, adding that he might use some of the money to pay down his credit card debt. Mr Feinstein said he started smoking cigarettes at the age of 16 and tried multiple methods to quit. Eventually vaping stuck.

For a few years, he was a loyal Juul customer, consuming a pod roughly every three days, and for several months participating in regular surveys the company conducted collecting data about his health and usage. He eventually switched to other brands because of the cost, he said. He said he felt that Juul had been unfairly singled out among vaping companies by regulators. “I am grateful that we got the settlement but I don’t think it was fair,” he confessed. “Does that make me a hypocrite? I don’t know.”

A Landmark Settlement

Juul Labs, once a dominant player in the e-cigarette market, faced numerous lawsuits from individuals and states across the U.S. claiming that the company downplayed the health risks of vaping and deliberately marketed to teenagers. The settlement, totaling billions, is one of the largest ever reached by a company in the vaping industry.

Thousands of customers who filed claims in the class-action lawsuit were recently notified of their eligibility for compensation, with many shocked at the size of the payouts.

Unexpected Relief for Many

“I couldn’t believe it when I saw the amount,” said one former Juul user, who, like many others, had purchased the product unaware of its potential health risks. “I didn’t expect to see much from the settlement — maybe a few bucks. But this could actually make a difference.”

Many customers share this sentiment, with some receiving amounts they describe as “life-changing.” For individuals who suffered health issues or addiction as a result of Juul use, the compensation is seen as long-overdue justice.

“I struggled with quitting for years,” said another claimant. “The payout can’t undo the damage, but it’s a step toward holding them accountable.”

The Fallout from Juul’s Rise

Juul became wildly popular in the late 2010s, especially among teenagers and young adults. Sleek, discreet, and marketed as a safer alternative to traditional cigarettes, Juul products seemed appealing to a new generation. However, it wasn’t long before reports emerged of a growing teen vaping epidemic and rising concerns about nicotine addiction among young users.

The lawsuits against Juul argued that the company used flashy marketing campaigns and flavored pods to hook young users while failing to disclose the addictive nature of their products. This led to a massive legal backlash, prompting state attorneys general and individuals alike to take action.

Mixed Reactions to the Payouts

While many customers are thrilled with the payouts, there is a bittersweet undertone. Some feel the settlement doesn’t fully address the long-term health concerns they face after years of vaping. Others worry that even with this financial settlement, the broader vaping industry will continue to appeal to younger consumers.

Still, the payouts represent a significant victory for those who felt misled by Juul’s early marketing. Public health advocates hope this settlement serves as a warning to other companies in the industry, sending a clear message that deceptive marketing will not go unpunished.

Juul’s Response and Future

For its part, Juul Labs has not admitted to any wrongdoing in the settlement but has agreed to pay the large sum as part of its effort to “resolve issues from the past.” The company has shifted its marketing and removed some of its more controversial products, such as flavored pods, in an attempt to rebuild its reputation.

However, Juul’s financial future remains uncertain. The company has faced regulatory hurdles, declining sales, and stiff competition from other vaping brands. The hefty settlement payouts, while providing some relief to consumers, are likely to add further strain to Juul’s financial stability.

A Wake-Up Call for the Industry

The settlement and payouts have sparked a broader conversation about the responsibility of vaping companies and the need for stricter regulations. Lawmakers and public health officials are urging greater transparency in the marketing and sale of vaping products, particularly those targeting younger consumers.

As former customers reflect on their payouts, many hope that this will mark the beginning of stronger protections for consumers and a clearer understanding of the risks associated with vaping.

For now, though, those receiving checks from Juul are left to reconcile their surprise and relief with the knowledge that the settlement is only part of a much larger issue.

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