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Juul Labs announced it has reached a settlement covering more than 5,000 lawsuits and about 10,000 individual plaintiffs, ending legal uncertainty for the e-cigarette company.
Financial terms were not disclosed.
Juul said Tuesday that it had secured an equity investment to cover the cost of the settlement, according to the Wall Street Journal.
Juul has been in talks with investors, including longtime board members, Hyatt Hotels heir Nick Pritzker, and California investor Riaz Valani, about a financial bailout, first reported by the Journal.
"In our ongoing fight for our company and mission, today’s news represents yet another significant step to secure our path forward," Juul Chief Executive K.C. Crosthwaite wrote in a memo to staff Tuesday.
He said the settlement "addresses the vast majority of outstanding litigation facing our company."
Many of the lawsuits accused Juul of marketing to children and teens.
Juul has said it never targeted young people, but has been working to regain the public’s trust.
JUUL Labs Inc. vaping e-cigarette device and USB charging dock are displayed in a convenience store on June 23, 2022 in El Segundo, California. - Vaping company Juul Labs said Thursday it would appeal a decision by the US Food and Drug Administration …
The settlement covers two trials that were set to go to court early next year, and four broad groups including personal-injury plaintiffs, Juul consumers, government entities such as school districts, and Native American tribes.
Lawsuits brought by several attorneys general are pending.
Last month, Juul announced plans to lay off about a third of its staff and secured financing from some of its early investors to stave off bankruptcy.