Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Juul sues FDA for documents said to justify e-cigarette ban

Published 09/20/2022, 04:48 PM
Updated 09/20/2022, 08:06 PM
© Reuters. FILE PHOTO: A man uses a Juul vaporizer in Atlanta, Georgia, U.S., September 26, 2019. REUTERS/Elijah Nouvelage

By Jonathan Stempel

(Reuters) - Juul Labs has sued the U.S. Food and Drug Administration over the agency's refusal to disclose documents supporting its order banning the company, which has been blamed for fueling a teenage vaping crisis, from selling e-cigarettes on the U.S. market.

In a complaint filed on Tuesday with a federal court in Washington, D.C., Juul accused the FDA of invoking the "widely abused" deliberative process privilege to improperly withhold scientific materials that are "central" to understanding the basis for the June 23 sales ban.

Juul said the materials would show whether the FDA conducted a legally required balancing of the public health benefits and risks of its products, including claims they help smokers quit cigarettes, and whether the agency's reasoning was scientifically sound.

"The public deserves a complete picture of the scientific facts behind one of the agency's most controversial and closely scrutinized decisions in recent years," Juul said.

An FDA spokeswoman declined to comment, saying the agency does not discuss pending litigation.

Juul accused the FDA of violating the federal Freedom of Information Act by withholding a majority of the "scientific disciplinary reviews" underlying the sales ban.

It said it filed an administrative appeal through the agency, but the FDA missed a Sept. 13 deadline to resolve it.

A federal appeals court temporarily stayed the sales ban on June 24.

The FDA then decided on July 5 to let Juul keep selling its products for the time being, saying "scientific issues" unique to the company warranted further review.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

On Sept. 6, Juul agreed to pay $438.5 million to settle claims by 34 U.S. states and territories over its marketing and sales practices, including that it improperly courted teenage buyers.

Marlboro cigarette maker Altria Group (NYSE:MO) Inc paid $12.8 billion in 2018 for a 35% stake in Juul. Altria valued that stake at $450 million as of June 30.

The case is Juul Labs Inc v Food & Drug Administration, U.S. District Court, District of Columbia, No. 22-02853.

Latest comments

The FDA is a corrupt institution. over course they are getting sued for abusing their power.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.