Facing rising scrutiny from worldwide and home regulators, the Altria Group has determined to put in writing down its funding into the e-cigarette firm JUUL by $4.5 billion.
That’s roughly one-third of the $12.eight billion that the tobacco big had invested into JUUL rather less than one yr in the past.
What a distinction a yr has made.
JUUL, which has turn into synonymous with the vaping phenomenon that has swept the U.S., was as soon as hailed as being on the forefront of a wave of corporations that have been making smoking out of date and nicotine consumption safer for shoppers.
The firm started operating into issues as its recognition elevated exponentially (partly by allegedly turning to a few of the identical techniques large tobacco used to focus on underage shoppers).
As the complaints started to roll in, and as JUUL was held accountable for an explosion in using tobacco merchandise amongst underage Americans, the regulatory scrutiny additionally started to extend.
First the corporate was compelled to restrict its sale of flavored tobacco merchandise. Now it might be compelled to tug all of its flavored merchandise outright.
None of the corporate’s troubles have been helped by the wave of vaping associated diseases which have swept by means of the U.S. inflicting a number of deaths in customers throughout a number of states.
Indeed, a brand new lawsuit in opposition to the corporate (filed two days in the past) alleges that JUUL knowingly bought contaminated pods regardless of warnings from no less than one worker.
First reported by BuzzFeed, the lawsuit was introduced by Siddharth Breja, a former senior vice chairman of world finance at Juul from May 2018 to March 2019.
Breja alleges he was fired for complaining concerning the cost — a declare {that a} spokesperson for JUUL referred to as “baseless”.
“[Breja] was terminated in March 2019 because he failed to demonstrate the leadership qualities needed in his role,”a spokesperson for JUUL wrote in an electronic mail. “The allegations concerning safety issues with Juul products are equally meritless, and we already investigated the underlying manufacturing issue and determined the product met all applicable specifications.”
The write down by Altria follows an announcement from JUUL that it intends to put off round 500 folks — or roughly 10% of its workforce.
