E-cigarette maker Juul Labs has agreed to pay $462million (£372million) to settle claims from six US states after it was accused of targeting teenagers.
Several states also accused the company of falsely marketing its vapes as less addictive than cigarettes.
The company admitted no wrongdoing and said the latest deal was part of its “commitment to resolve issues from the company’s past”.
The deal means Juul has now settled cases for more than $1 billion.
Juul has been accused of fueling an increase in teenage vaping on its way to becoming one of the top e-cigarette companies in the US.
The company has repeatedly denied targeting young people, but critics have pointed out its colorful packaging, variety of flavors and use of young models in advertising campaigns.
According to the Centers for Disease Control and Prevention, more than 2.5 million US high school students will use e-cigarettes in 2022.
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Following the settlement, New York Attorney General Letitia James said, “Juul’s lies created a nationwide public health crisis and put addictive products in the hands of minors who thought they were doing something harmless.”
“Today they are paying the price for the damage they caused,” she added.
California Attorney General Rob Bonta added, “Today is another step forward in our fight to protect our children from becoming addicted to vaping and nicotine.”
E-cigarettes have helped many thousands of people quit smoking by removing the dangerous and toxic tobacco smoke from their habit, providing a huge health boost.
However, inhaled e-cigarette vapor can still contain small amounts of chemicals, including nicotine, which in turn can pose risks. There is concern that young people are starting to vape because they see it as completely risk-free.
Juul said usage of its products by people under the age of 18 has dropped 95% since the fall of 2019, when it changed its marketing practices as part of an “enterprise-wide reset.”
“With this settlement, we move closer to fully resolving the company’s historic legal challenges and securing our future,” the company added.
Juul’s will pay the $462 million over eight years.
New York, California, Colorado, Illinois, Massachusetts and New Mexico, along with the District of Columbia, were involved in Wednesday’s settlement, which resulted from separate lawsuits filed against the company.
In September last year, the company agreed to pay $438.5 million to end an investigation into its advertising to underage buyers.
The 30-plus state deal restricted Juul’s marketing, such as banning the use of people under the age of 35 in its ads.
Juul still faces lawsuits in other states.
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