Gen Z individuals were pleasantly surprised by unexpected payouts from Juul’s class-action lawsuit on 21 October. Many of them had filed claims in the lawsuit against Juul in 2021, not expecting to receive any compensation. One user, Drewe Raimi, who filed a claim as a college student almost as a joke, was shocked to receive a Venmo payment of nearly $3,500 from “Juul Labs, Inc. Settlement Administrator.”
In a TikTok video set to the song “Life Is Worth Living” by Justin Bieber, Raimi captured her celebration upon receiving the payment, joking about forgetting she had filed the claim as a joke in college. Other Gen Z users also shared their surprise payouts, with amounts ranging from $200 to $7,000. Some expressed disbelief at receiving money they had completely forgotten about, with one user exclaiming, “I just woke up to $1,600!”
The class-action lawsuit against Juul and its 35% stakeholder Altria alleged that the companies had misled consumers about the addictiveness and dangers of their products, which were unlawfully marketed to teenagers. The $300 million settlement, divided between Juul and Altria, aims to provide compensation to affected individuals. Despite Altria denying the allegations and Juul not admitting any wrongdoing, both companies agreed to settle the lawsuit.
Following a federal judge’s approval of Altria’s portion of the settlement in March, and Juul’s approval in January 2024, the verification process for around 842,000 eligible customers is underway. Claimants without proof of purchase will have their compensation capped at $300. While the exact payout amounts vary based on provided receipts, an average has not been disclosed publicly.
As the FDA rescinded a previous ban on Juul products in June pending further health studies and legal reviews, the future of Juul remains uncertain. Despite the legal battles, the unexpected payouts from the class-action lawsuit have provided some Gen Z individuals with a welcome surprise, illustrating the impact of such legal actions on both companies and consumers alike.