“Juul Labs Inc. won a ruling that knocked out racketeering claims from a group of hundreds of lawsuits accusing the e-cigarette maker of deliberately targeting teenagers. U.S. District Judge William Orrick in San Francisco on Friday said claims brought by consumers, local governments and school districts under the Racketeer Influenced and Corrupt Practices Act — which could have put Juul on the hook for triple damages — didn’t pass legal muster. But the judge said the plaintiffs can amend their court filings and try to make a RICO case. If government entities and others suing over the e-cigarette marketing tactics aren’t successful in reviving the so-called RICO claims, it will take some pressure off Juul and Altria. The judge refused to throw out claims Juul and Altria officials engaged in a “scheme to defraud” through misleading statements about e-cigarettes’ addiction risk. He’s also letting plaintiffs proceed with allegations that executives “sought to grow the market for nicotine-addicted individuals, particularly youth who did not use traditional tobacco products.””
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Juul Beats Racketeering Claims in Marketing Suits, For Now
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