The makers of Juul vape pens will send checks to some consumers after reaching a settlement in a lawsuit over allegations that the company charged higher prices and illegally marketed products to minors.

According to the lawsuit, plaintiffs paid more for Juul products than they would have had if accurate information about their addictiveness and safety had been available. The court approved the distribution of funds on October 8.

Although Juul Labs has not admitted any wrongdoing, those who purchased Juul products in the United States on or before December 7, 2022 and filed claims by the February 5 deadline are eligible to receive a $300 million payment. Dollar comparison.

The specific amount available depends on how much each consumer spent on Juul products compared to other comparison group members and the number of claims filed.

“Juul, like most companies, does not admit any wrongdoing and has decided to resolve allegations that they marketed their products to minors or concealed the addictive nature of the product,” said Kevin Thompson, financial expert and founder and CEO of 9i Capital Group Newsweek.

Newsweek I emailed Juul Labs for comment.

While the lawsuit alleged that Juul targeted minors with its e-cigarette marketing and used misleading advertising that downplayed the product’s nicotine content, the court did not rule on whether the claims were true. Juul Labs agreed to pay millions back to users.

“Many young people became addicted to nicotine, resulting in serious long-term health risks,” Thompson said of the lawsuit’s claims. “This settlement is part of a larger effort to hold Juul accountable for its role in the e-cigarette crisis, and the money is intended to compensate consumers who were misled or harmed by the company’s actions.”

While many consumers are now aware of Juul’s addictive nicotine components, this may have been less obvious to consumers during Juul’s initial popularity, said Alex Beene, an instructor of financial literacy at the University of Tennessee at Martin.

“It’s easy for us to see now, but for those whose claims were affected by Juul’s practices before December 2022, it’s not so clear whether the company did everything it could to mitigate the impact on consumers to draw attention to his products,” said Beene Newsweek.

“Filing a claim is certainly a way to seek financial assistance as a path to forgiveness, but the most important factor moving forward is to ensure that others, especially minors, understand the impact of future Juul products before using them buy.”

Michael Ryan, financial expert and founder of michaelryanmoney.com, said the comparison underscores a larger trend of companies putting profits over consumers’ health.

“This settlement is not just about refunds for previous purchases,” Ryan said Newsweek. “This is about holding these companies accountable for their marketing strategies that have had serious financial and health consequences for consumers.”

Because Juul has made more profits than it pays out, the settlement is unlikely to deter the company in the future, Ryan said.

During peak usage, many young adult Juul customers spent between $30 and $50 per week, or thousands per year, on the e-cigarettes.

“The settlement, which provides compensation ranging from $10 to several hundred dollars depending on the claim documentation, only covers a small portion of what many consumers actually spent on these products,” Ryan said.