MINNEAPOLIS — Minnesota Attorney General Keith Ellison will personally open his state’s case against Juul Labs on Tuesday, the first of thousands of cases against the e-cigarette maker that have come to trial.
Minnesota is seeking more than $100 million in damages, Ellison said, accusing Washington-based Juul of illegally targeting young people to get a new generation of nicotine addicts. On Tuesday morning, the court sat with a jury of eight women and four men. The opening statements were expected to end in the afternoon.
Juul has faced thousands of lawsuits across the country, but most have been settled, including 39 with other US states and territories. Not Minnesota, which won a landmark $7.1 billion settlement with the tobacco industry in 1998. Minnesota added tobacco industry giant Altria, which previously held a minority stake in Juul, as a co-defendant in 2020.
Altria completed the asset sale this month and said it effectively lost its $12.8 billion investment. But he hasn’t given up e-cigarettes: Just days later, Altria announced a $2.75 billion investment in Juul’s competitor, vaping company NJOY.
“We’ll show how Juul and Altria swindled and addicted a generation of Minnesota youth to their products, causing both massive societal harm and the state’s high cost to fix that harm,” Ellison said in a statement. He plans to turn the case over to lawyers from two outside law firms after he makes some of his opening statements.
The jury trial before Hennepin County District Judge Laurie Miller is expected to last about three weeks. The state’s lawsuit against Blue Cross and Blue Shield of Minnesota dragged on for nearly four months before the big tobacco companies settled the dispute, just before closing arguments.
The case forced the release of millions of pages of formerly secret industry documents that expanded America’s understanding of how the tobacco industry tried to hide the addictive nature of its products. Part of the $7.1 billion went to anti-smoking programs, but Juul and Altria noted in court that lawmakers spent most of that money funding the state government.
A 2019 lawsuit against Juul alleges consumer fraud creates a public nuisance, unfair enrichment, and a conspiracy with Altria that “hunted and lured Minnesota kids through deceptive and illegal tactics to buy a product that could sentence them to a lifelong nicotine addiction.” and other destructive actions.
The state said in a statement that Juul’s marketing was designed to trap kids by recruiting “cool kids” and using social media and celebrities to act as “sellers” for their addictive products. “The defendants allege that their behavior was intended to help ‘aging smokers’ quit smoking. This statement is false, it is a smokescreen,” the message says.
Juul said Minnesota’s insistence on litigation has robbed its citizens of some of the nearly $440 million in settlement money that other states use to reduce tobacco use.
“Effective responses to underage use of all tobacco products in Minnesota, including couples, depend not on headline-based trials but on evidence-based policies, programs and enforcement,” Juula said in a statement.
Altria Group of Richmond, Virginia, which makes Marlboro cigarettes and other tobacco products and was formerly known as Phillip Morris Cos. — stated that she bought a 35% stake in Juul Labs in 2018 only after Juul assured Altria “and announced to the whole world” that it had made significant changes to its marketing.
Juul Labs was launched in 2015 thanks to the popularity of flavors such as mango, mint and creme brulee. Teenagers contributed to its growth, and some became addicted to high nicotine Juul pods. Amid the backlash, Juul pulled out of all advertising in the US and discontinued most of its fragrances in 2019, falling out of favor with teenagers. Juul’s share of the multi-billion dollar market has dropped to around 33% from 75%.
Juul is currently appealing the FDA’s rejection of its application to continue selling its vaping products as an alternative to smoking for adults. Juul is still south of New York, California, Massachusetts, New Mexico, Alaska, Illinois, West Virginia, and the District of Columbia.