Baltimore has reached a multi-million dollar settlement with Juul Labs Inc. over marketing practices that allegedly targeted the city's youth, Mayor Brandon Scott announced Wednesday.
Juul, an e-cigarette company known for its flavored vaping products, will pay the city either $7.5 million by the end of the year or $8 million over the next two years, according to the news release. The deal comes two years after the city opted out of a state settlement that netted Maryland nearly $14 million.
"Since taking office, my administration has done everything in our power to invest in Baltimore’s young people to ensure they can reach their full potential,” Scott said in a statement. “Achieving that aim means focusing on every aspect of their lives – including their health. When there is such a clear case of a company wrongfully targeting them to increase their bottom line, then we have a responsibility to take action and that’s what we did with this lawsuit. I am grateful to the legal team for their diligent work on this case and for reaching this settlement for the residents of Baltimore."
Wednesday's announcement is the latest amid a string of successful lawsuits this year. The city also has reached three settlements with pharmaceutical companies over their roles in the overdose crisis in recent months, totaling $242.5 million.
In the Juul lawsuit, the city accused the company of marketing its highly addictive products to minors. Its practices endangered the youth and harmed the city financially because of the subsequent anti-vaping messaging campaigns it created in response, officials said.
Litigation against Juul dates back to 2022, when 33 states struck a $434.5 million deal with the company.
Maryland received $13.9 million from the settlement, under which Baltimore would have only received $1.9 million if it were to have joined, officials said.
"We have and will continue to refuse settlement offers that do not fairly compensate Baltimore City for the harms that the misconduct of these companies bring on us," City Solicitor Ebony M. Thompson said in a statement.
The mayor's office did not immediately respond to requests for comment about how the city intends to spend the settlement funds.
Vaping is the most common form of nicotine intake among middle and high school students. Last year, 2.1 million students, or 7.7%, reported currently using some type of e-cigarette, according to the Centers for Disease Control and Prevention.
Among those who reported current use, more than 25% used an e-cigarette every day.
While studies have shown vaping to be less harmful than smoking, medical professionals have still warned about its harmful effects on the heart and lungs.
In 2020, for example, the CDC confirmed nearly 3,000 cases of e-cigarette or vaping use-associated lung injury, also known as EVALI, and 68 deaths resulting from the condition.
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