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Juul customers shocked after receiving huge payout from $300,000,000 court settlement

Home> News

Updated 12:22 24 Oct 2024 GMT+1Published 12:18 24 Oct 2024 GMT+1

Juul customers shocked after receiving huge payout from $300,000,000 court settlement

Over 800,000 people can expect money from the massive payout

Gerrard Kaonga

Gerrard Kaonga

One Juul customer initially thought it was fake when thousands of dollars hit his account as part of a payout from Juul.

Earlier this year, electronic cigarette company Juul agreed to pay more than $300m in a court settlement to over 800,000 former customers as a result of a lawsuit against the company.

The lawsuit alleged two key things: Juul customers paid more for the product than they would have had they been provided with accurate information about its addictiveness and safety, and that the products were unlawfully marketed to minors.

While the court did not decide whether Juul labs and tobacco giant Altria, which previously held a sizable stake in the company, violated any laws, a settlement was reached, according to a BBC report.

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So, this could be a wonderful little payday for those who submitted claims to the court.

About 14 million people submitted claims, but only 842,000 were officially validated, and can expect a cut of the $3 million pie.

Payments have now started to hit recipients accounts over the lawsuit (Michael M. Santiago/Getty Images)
Payments have now started to hit recipients accounts over the lawsuit (Michael M. Santiago/Getty Images)

One of those benefiting individuals is Washington real estate agent Howard Feinstein, who said he was stunned when he received $3,000 to his bank account.

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Speaking to the BBC after he received his payment this week, he said: "I thought it was fake at first. I was absolutely shocked.

"The money couldn't have come at a better time so I'm really grateful that they're following through.”

He said he may consider using the money to pay down his credit card debt. So, happy days for him.

However, those hoping for an equally lucrative payout may not be as fortunate as Feinstein.

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Lead attorney on the case, Dena Sharp of the San Francisco law firm Girard & Sharp, said the payouts range from $15 to more than $10,000. But the average sum is about $240.

Juul payments could be anywhere between $15 and $10,000 says lead attorney
Juul payments could be anywhere between $15 and $10,000 says lead attorney

She added: “Please continue to be patient and give us a little bit of time to process these claims."

Sharp says the court took steps to get rid of claims that were duplicates, had signs of fraud, and those that didn’t have proof of purchase. She added that a quarter of those receiving money purchased directly from the company, making their eligibility easier to verify.

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The Juul company seems happy to have this issue behind them now, and they've issued a statement.

Juul Labs said: “[We are] pleased to have resolved the vast majority of the company’s past legal issues and are focused on advancing our mission.”

They noted that this included reducing the use of their products by underage users.

Featured Image Credit: Michael Short/The San Francisco Chronicle via Getty Images / Michael M. Santiago/Getty Images

Topics: Money, News, US News, Vaping

Gerrard Kaonga
Gerrard Kaonga

Gerrard is a Journalist at UNILAD and has dived headfirst into covering everything from breaking global stories to trending entertainment news. He has a bachelors in English Literature from Brunel University and has written across a number of different national and international publications. Most notably the Financial Times, Daily Express, Evening Standard and Newsweek.

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