Press release from the office of Maryland Attorney General Brian E. Frosh: Maryland Attorney General Brian Frosh today announced a tentative agreement in principle of over $438.5 million between JUUL Labs and 34 states and territories that would resolve an investigation into the e-cigarette manufacturer’s marketing and sales practices. In addition to the financial terms, the settlement would force JUUL to comply with a series of injunctive terms restricting their marketing and sales practices.

JUUL was, until recently, the dominant player in the vaping market. The attorneys general contend that JUUL rose to this position by willfully engaging in an advertising campaign that appealed to youth, even though its e-cigarettes are both illegal for them to purchase and are unhealthy for youth to use. The attorneys general allege that JUUL relentlessly marketed to underage users with launch parties, advertisements using young and trendy-looking models, social media posts, and free samples. It sold its product in flavors known to be appealing to underage users. The attorneys general further allege that, to preserve its young customer base, JUUL relied on age verification techniques that it knew were ineffective.