A settlement agreement was announced by North Carolina state attorneys Monday, pushing Juul Labs, a leading e-cigarette company, to pay $40 million and change their business strategies in the state.
The settlement requires Juul Labs to pay $13 million in the first 30 days and the rest of the payments across a span of six years.
“North Carolina is now the first state in the nation to hold Juul accountable for its instrumental role in creating a youth vaping epidemic,” Attorney General Josh Stein stated, further explaining that the money Juul is paying will go towards preventative programs for teens addicted to its products, according to The News & Observer.
North Carolina is the first state to file a lawsuit against Juul Labs for the company’s effects on the state’s youth. Stein accused Juul Labs of “unlawfully marketing and selling its products to youth,” by using a “sleek device,” “sweet flavors” and selling products online to underage teens, according to the outlet.