FTC Complaint Dropped as Altria Exits Juul

The U.S. Federal Trade Commission (FTC) has dismissed a complaint against Altria Group (NYSE: MO) and Juul Labs regarding Altria’s investment in Juul back in 2018. This news, reported by Reuters, sheds light on the evolving situation between the tobacco giant and the e-cigarette manufacturer.

Altria made headlines in late 2018 when it invested a staggering $12.8 billion for a 35 percent stake in Juul. However, in 2020, the FTC deemed this investment to be a violation of antitrust law. The reason being that Altria acquired a position in Juul instead of continuing to compete directly with the e-cigarette company in the closed-system e-cigarettes market.

To resolve the issue, Altria decided to exchange its entire investment in Juul for a global license to Juul’s heated tobacco intellectual property. Consequently, Altria approached the FTC, requesting them to drop their challenge.

This move came as no surprise considering that Altria had already terminated its stake in Juul. The investment had significantly declined in value due to regulatory scrutiny and ongoing litigation surrounding Juul’s marketing practices. In fact, the U.S. Food and Drug Administration (FDA) had ordered Juul Labs to remove its e-cigarettes from store shelves in June 2022, citing insufficient evidence of their safety. Following Juul’s challenge to this marketing denial order, the FDA agreed to reevaluate the company’s pre-market tobacco product application, recognizing unique scientific issues associated with Juul.

Additionally, Juul Labs recently agreed to settle a two-year investigation by 33 U.S. states, agreeing to pay nearly $440 million in relation to concerns over the marketing of their vaping products, which critics argue contributed to an increase in underage vaping.


Information for this briefing was found via the Tobacco Reporter and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Cronos Group Posts US$107.7 Million Loss, Negative Gross Profit For Q2 2020

Cronos Group (TSX: CRON) (NASDAQ: CRON) reported its second quarter financial results this morning, revealing...

Thursday, August 6, 2020, 09:01:37 AM

JUUL Slapped with FDA Warning Letter for Health Claims

JUUL Labs, an e-cigarette products company that is 35% owned by Altria (NYSE: MO) and...

Monday, September 9, 2019, 12:01:14 PM

Juul Labs Reportedly Considering Chapter 11 Bankruptcy

E-cigarette maker Juul Labs has reportedly been holding informal discussions about funding a potential Chapter...

Wednesday, October 5, 2022, 09:38:00 AM

Minnesota’s Lawsuit Against JUUL Labs Begins Trial

Minnesota Attorney General Keith Ellison opened his state’s case against e-cigarette maker Juul Labs on...

Wednesday, March 29, 2023, 04:07:00 PM

Altria’s Juul Labs Expected To Be Ordered By US FDA To Remove Products From Market

Altria (NYSE: MO) was dealt a heavy blow this morning when it was reported by...

Wednesday, June 22, 2022, 10:12:56 AM