BROOKLYN, N.Y. — A shareholder sued a manufacturer of cigarettes and smokeless products on Dec. 2 in New York federal court, alleging that the company and two of its senior executives violated federal securities laws by failing to conduct sufficient due diligence before making a nearly $13 billion investment in e-vapor products manufacturer JUUL Labs Inc. (Patrick F. Cipolla v. Altria Group Inc., et al., No. 19-6774, E.D. N.Y.).
The attorney general of New York on Nov. 19 sued Juul Labs Inc. (JLI) in a state court, alleging that the e-cigarette manufacturer violated state law in its marketing and sales of vaping products to minors, one day after the attorney general of California announced a similar lawsuit (Attorney General of New York v. Juul Labs Inc., No. N/A, N.Y. Sup., New York Co.; California v. Juul Labs, Inc, et al., No. RG19043543, Calif. Super., Alameda Co.).
MIAMI — A Florida jury on Nov. 12 added $27.5 million in punitive damages to a previous $15 million award for a woman’s tobacco-related lung cancer (Kenneth Gloger v. R.J. Reynolds Tobacco Co., et al., No. 2011-CA-23377, Fla. Cir., Dade Co.). VIDEO FROM THE TRIAL IS AVAILABLE.
PORT ST. LUCIE, Fla. — A Florida jury on Oct. 24 returned a defense verdict for cigarette manufacturer R.J. Reynolds Tobacco Co., sources told Mealey’s Publications (Helen Delancy v. R.J. Reynolds Tobacco Co., No. 2008CA000067, Fla. 19th Dist., Martin Co.). VIDEO FROM THE TRIAL IS AVAILABLE.
SAN FRANCISCO — U.S. Judge William H. Orrick III of the Northern District of California on Nov. 8 named four lawyers to the interim leadership team for the multidistrict litigation against Juul Labs Inc, which alleges that an e-cigarette maker created an addictive product that is deceptively marketed to children (In Re: Juul Labs, Inc., No. 2913, JPMDL).
JACKSON, Miss. — A vaping company and manufacturer and a newly formed trade association on Nov. 13 rejected arguments from the Food and Drug Administration that the government can regulate e-cigarette products under the Family Smoking Prevention & Tobacco Control Act (TCA) and asked a federal court in Mississippi to grant a motion for preliminary injunction to prevent the FDA from taking any regulatory or enforcement action against them (Big Time Vapes Inc. and United States Vaping Association v. Food and Drug Administration, et al., No. 19-531, S.D. Miss.).
FORT LAUDERDALE, Fla. — A Florida jury on Nov. 15 added $148 million in punitive damages, just a week after awarding $9.2 million in compensatory damages after hearing that the plaintiff wanted to quit smoking but that his addiction was so strong he kept using tobacco even after doctors diagnosed him with lung cancer and his disease left him needing oxygen to breathe, sources told Mealey Publications (Edward Caprio v. Philip Morris USA Inc., No. 2007-CV-036719, Fla. Cir., 17th Jud.). VIDEO FROM THE TRIAL IS AVAILABLE.
GREENSBORO, N.C. — An e-cigarette company facing charges of unfair and deceptive trade practices in a lawsuit filed by North Carolina did not present any reasonable basis for removing the case from state court, a federal judge ruled Nov. 7, remanding the case to state court and ordering the company to pay attorney fees (North Carolina v. Eonsmoke LLC, No. 19-987, M.D. N.C.).
WILMINGTON, Del. — The Delaware Supreme Court on Nov. 7 refused to consider an interlocutory appeal filed by a cigarette manufacturer, agreeing with a chancery court that the manufacturer’s “assertion of immediate and irreparable harm” if denied protection from a hypothetical equity fee statute in Florida “was overblown and speculative” (ITG Brands LLC v. Reynolds American Inc., et al., No. 453, 2019, Del. Sup.).
NEW YORK — A majority of a Second Circuit U.S. Court of Appeals panel on Nov. 7 affirmed that United Parcel Service Inc. illegally shipped untaxed cigarettes from Native American smoke shops in New York but reduced the damages awarded to the state and New York City by $149 million (New York, et al. v. United Parcel Service, Inc., Nos. 17-1993, 17-2107 and 17-2111, 2nd Cir., 2019 U.S. App. LEXIS 33308).
NEW YORK — A panel of the Second Circuit U.S. Court of Appeals on Nov. 7 reversed partial summary judgment rulings for a Washington state tribal tobacco company and against New York in the state’s efforts to stop the company from shipping untaxed cigarettes to reservation smoke shops in New York (New York v. Mountain Tobacco Company, et al., Nos. 17-3198 and 17-3222, 2nd Cir., 2019 U.S. App. LEXIS 33306).
FORT LAUDERDALE, Fla. — A Florida jury on Nov. 7 awarded $9.2 million in compensatory damages in a tobacco case in which a man allegedly quit smoking but his addiction was so strong he kept smoking after doctors diagnosed him with lung cancer and his diseases left him needing oxygen to breathe. Phase two of the trial is expected to start in mid-November (Edward Caprio v. Philip Morris USA Inc., No. 2007-CV-036719, Fla. Cir., 17th Jud.).
SAN FRANCISCO — A former executive for Juul Labs Inc. who alleges that the company knowingly distributed 1 million contaminated tobacco pods sued the company on Oct. 29 in a California federal court after he says he was fired for raising concerns (Siddharth Breja v. Juul Lab Inc., No. 19-7148, N.D. Calif.).
LEXINGTON, Ky. — The U.S. Food and Drug Administration on Oct. 11 urged a Kentucky federal court to deny a motion for a preliminary injunction filed by a vaping industry trade association and one of its members against the FDA’s enforcement of a premarket tobacco applications deadline that the group says will destroy the e-cigarette industry (Vapor Technology Association, et al. v. U.S. Food And Drug Administration, et al., No 19-0330, E.D. Ky.).
SAN FRANCISCO — A mother sued Juul Labs Inc. on Oct 15 in a California federal court, alleging that the e-cigarette manufacturer is responsible for the death of her 18-year-old son (Lisa Marie Vail v. Juul Labs Inc., No. 19-6597, N.D. Calif.).
TALLAHASSEE, Fla. — A Florida appeals court on Oct. 24 reversed a $6.4 million verdict against R.J. Reynolds Tobacco Co. in a wrongful death case, finding that the trial court erred in instructing the jury on a conspiracy to commit fraudulent concealment claim (R.J. Reynolds Tobacco Co. v. Linda Prentice, No. 1D17-2104, Fla. App., 1st Dist.).
WEST PALM BEACH, Fla. — A shareholder sued a distributor of e-cigarettes, vaporizers and accessories and products containing hemp-derived cannabidiol (CBD) and certain of its executive officers and directors in Florida federal court on Oct. 16, alleging that the defendants failed to disclose in offering documents for an initial public offering (IPO) a major initiative in the City of San Francisco that would severely impede the company’s business and financial success in offering documents in violation of federal securities laws (Randall Mayer v. Greenlane Holdings Inc., et al., No. 19-81411, S.D. Fla.).
JACKSONVILLE, Fla. — A Florida jury on Sept. 24 returned a defense verdict for tobacco company R.J. Reynolds Tobacco Co. after hearing that a man enjoyed smoking and never intended to quit. The jury found that cigarettes caused a man’s lung cancer but apportioned him 75 percent of the liability and awarded his estate no damages, sources told Mealey Publications (Robert Miller v. R.J. Reynolds Tobacco Co., No. 2008-CA-000401, Fla. 4th Cir., Duval Co.). VIDEO FROM THE TRIAL IS AVAILABLE.
BOSTON — A Massachusetts jury on Sept. 26 awarded a woman $9,685,414 after hearing that Philip Morris designed its marketing to lure children into becoming lifelong customers, sources told Mealey Publications (Patricia Greene v. Philip Morris, No. 1581CV01808, Mass. Super., Middlesex Co.). VIDEO FROM THE TRIAL IS AVAILABLE.
MIAMI — A Florida jury on Sept. 24 awarded $1.35 million to a man who claimed that he began smoking as a result of tobacco company misrepresentations, sources told Mealey’s Publications (Jorge Del Real v. Philip Morris USA Inc., No 2007-CA-032909, Fla. Cir., Dade Co.). VIDEO FROM THE TRIAL IS AVAILABLE.