The state of Alaska has settled lawsuits against Juul and Altria, two nicotine vapor manufacturers, for a combined $7.8 million, the state Department of Law said on Friday.
The suits were part of a nationwide pattern: Alaska and other U.S. states had alleged that the companies deliberately targeted children with advertising, something that likely contributed to a surge in nicotine use among children and young adults.
Altria settled Alaska’s lawsuit for $2 million last year, and the state announced a $5.8 million consent judgment with Juul on Friday.
Under the settlements, neither Juul nor Altria must admit fault, but both must abide by marketing restrictions. One key point in the settlement: Juul can’t use cartoons to advertise its products.
“This case took five years and a great deal of work from our public health and consumer protection teams, but it was worth it,” said Alaska Attorney General Stephen Cox, in a prepared statement.
“We now have strong court-enforceable limits on how these companies can operate in Alaska, and we’ve obtained a per-capita recovery that ranks near the top nationally, with those dollars going straight into prevention and consumer protection.”
Alaska was one of the last states in the country to settle with Juul, which has already paid more than $1 billion to states across the country.
Some states have since filed additional lawsuits against vape distributors, alleging that they contributed to a surge in nicotine vapor use among children and young adults.
Money from Alaska’s Juul settlement is to be paid over the next five years.
Under the financial terms of the consent judgment, half of the proceeds would be used to fund tobacco control and prevention programs, and the other half would go to the Department of Law’s consumer protection program.
Typically, the spending of money earned in financial judgments must be approved by the Alaska Legislature before becoming official.
“The use of vapes and other nicotine products among youth in Alaska remains a concern,” said Alaska Department of Health Commissioner Heidi Hedberg in a prepared statement. “This funding will help families and communities continue to access education, prevention, and cessation programs.”
