Customers of Juul Labs are expressing surprise and satisfaction after receiving payouts from a recent class-action settlement totaling over $300 million.
The settlement, which addresses allegations that the vaping company misled customers regarding the addictiveness and safety of its products, began distributing funds this week.
Howard Feinstein, a 55-year-old real estate agent from Washington state, received more than $3,000 and described his reaction as shock.
“I thought it was fake at first,” he said.
Feinstein highlighted the unexpected nature of the payout.
Feinstein was one of over 800,000 former customers to benefit from the settlement, with payments varying widely from $15 to over $10,000, averaging around $240, according to attorney Dena Sharp from the San Francisco law firm Girard & Sharp, which led the case.
The claims process saw over 14 million submissions, but only about 842,000 were validated after a thorough review to eliminate duplicates and fraudulent claims. Sharp noted that approximately a quarter of the eligible claimants purchased directly from Juul, which simplified verification.
The lawsuit accused Juul of unlawfully marketing its products to minors and misleading consumers about their safety and addictiveness. Although the court did not determine whether Juul or its former partner, Altria, violated any laws, the settlement reflects the companies’ decision to resolve many of their past legal challenges. Juul Labs stated it is focused on reducing underage use of its products.
Many recipients of the payouts took to social media to celebrate their unexpected windfall. For some, the funds arrived at a timely moment; Feinstein mentioned using part of his payment to reduce credit card debt. Another recipient, Jessie Vendegna from Arizona, expressed satisfaction with her payment of $231, viewing it as a reward for quitting vaping.
Attorneys specializing in class-action suits noted that larger individual payouts like those in the Juul settlement are uncommon. For comparison, other recent settlements have resulted in much lower payments, with some averaging only a few dollars.
The payments were issued electronically, with recipients receiving funds via methods like PayPal or virtual prepaid debit cards. Legal experts indicated that the settlement amounts were likely calculated based on the documented purchases made by claimants, which meant that those who kept records of their spending would see larger payouts.
This settlement follows ongoing scrutiny of Juul and similar companies, particularly concerning their marketing strategies and the impact of e-cigarettes on young users. As of 2023, the Centers for Disease Control and Prevention reported that nearly 8% of middle and high school students used e-cigarettes, underscoring the ongoing public health concerns related to vaping products.
BBC and Market Watch contributed to this report.
