Seattle Public Schools is set to receive a total of $1.75 million by 2027, as a result of settlements concluded after a prolonged four-year legal dispute with the e-cigarette manufacturer JUUL Labs.
The settlement terms dictate that the district will net around $1.3 million after deducting litigation expenses and attorney’s fees, which account for 15% of the total amount. The initial payment of $750,000 is scheduled for this month, followed by annual payments of approximately $150,000 each January from 2024 to 2027.
The legal action against JUUL Labs was initiated by Seattle Public Schools in November 2019. The lawsuit, filed in the United States District Court for the Western District of Washington, accused JUUL Labs and other involved parties in the production, distribution, and marketing of vaping products, of deliberately targeting minors. This alleged targeting was claimed to have led to a significant rise in vaping and nicotine addiction among young people.
The lawsuit’s intent was not just financial compensation; it also sought a judicial order to halt the defendants from marketing their products to minors, alongside seeking funds for programs within the district to address addiction and to educate students about the risks of addictive substances, including nicotine. The school district's general counsel mentioned that certain aspects of the case were addressed through regulatory actions by the Food and Drug Administration.
Seattle Public Schools was one of the 1,500 government entities involved in this lawsuit. The settlements were agreed upon in September, but only became official following court approval as part of a broader class-action settlement.
The Seattle Public Schools Board of Directors endorsed the acceptance of the settlement funds during their meeting on December 13. Following this, the district’s counsel highlighted the need to assemble a team, involving members from School Health, to determine the most effective utilization of these funds in addressing issues arising from JUUL’s marketing practices.
Furthermore, the district finalized a separate settlement with Altria, another defendant in the case, in July. This agreement will result in Seattle Public Schools receiving an additional approximate amount of $400,000, expected to be paid in April 2024.
