July 2026: Delaware Judge Allows Second Lawsuit Challenging JUUL Rescue Deal to Proceed
JUUL Labs will face a second shareholder lawsuit challenging the rescue financing that kept the e-cigarette company out of bankruptcy after a Delaware court ruled that key claims against investors and directors can proceed. In a brief order issued on July 14, A Delaware vice chancellor declined to dismiss a lawsuit alleging that members of JUUL’s board and certain investors breached their fiduciary duties in connection with the company’s recapitalization. The complaint also includes claims of aiding and abetting and unjust enrichment.
The lawsuit centers on JUUL’s 2022-2023 rescue financing, under which approximately $1.9 billion of debt was converted into equity. The transaction was completed as the company sought to avoid bankruptcy while facing mounting litigation over allegations that it marketed its vaping products to underage consumers, as well as prolonged regulatory uncertainty surrounding the U.S. Food and Drug Administration’s review of its premarket tobacco product applications. The recapitalization significantly diluted existing shareholders and shifted control of the company to participating investors. The case follows an earlier investor lawsuit over the same transaction that proceeded to trial before settling on undisclosed terms in July 2024. The new lawsuit, however, raises separate legal claims that the court has now ruled may move forward.
JUUL’s restructuring came during one of the company’s most challenging periods, as it faced thousands of lawsuits, intense regulatory scrutiny, and uncertainty over the future of its products in the U.S. market. In 2025, the U.S. Food and Drug Administration authorized the continued marketing of JUUL’s tobacco- and menthol-flavored e-cigarettes.
July 2025: U.S. FDA Grants Marketing Orders to 5 JUUL Vape Products
U.S. Food and Drug Administration (FDA) issued marketing granted orders (MGOs) to JUUL device and 4 JUUL pods: Tobacco & Menthol in 3% and 5% nicotine concentration. The decision relates to JUUL’s 2020 application which includes over 110 scientific studies covering nonclinical, clinical, and behavioral science. Based on the scientific review, FDA determined that permitting the marketing of JUUL is “appropriate for the protection of public health” – the standard required by statute for authorization.
JUUL Labs issued a statement welcoming the decision and underlined that more than two million Americans have switched from combustible tobacco to JUUL and JUUL Labs is the only company with vape MGOs that doesn’t also sell cigarettes. JUUL Labs also noted that the underage use of vapes is at the lowest point in more than a decade and reported underage use of JUUL products has decreased by more than 98% since 2019.
Having developed a portfolio of “adult-oriented flavors” beyond Virginia Tobacco and Menthol, JUUL Labs plans to submit further applications with updates to the JUUL device and pod hardware with the goal of improving the user experience.
December 2023: Juul Submits Menthol PMTA for Next-Gen JUUL2 Featuring Built-In Age-Verification Tech
Juul Labs has submitted a Pre-market Tobacco Product Application (PMTA)1 to the U.S. FDA for menthol-flavored pods at an 18 mg/mL nicotine concentration, designed specifically for its next-generation JUUL2 device2. This follows the company’s July 2023 PMTA submission for tobacco-flavored pods and the JUUL2 device itself – making it among the first fully age-gated vapor systems submitted for regulatory review.
First launched in the UK in 2021, the JUUL2 platform utilizes unique Pod ID authentication technology to combat counterfeit products and enforce age-verification requirements. Each JUUL2-compatible pod contains a secure microchip that communicates directly with the device, requiring verified age confirmation before activation. The device itself can also be locked by the owner at any time to prevent unauthorized access.
To further minimize youth access and social sourcing, Juul Labs is implementing strict volume controls. Beyond limiting the total number of devices a consumer can purchase, the company will also cap the number of new devices that each unique, age-verified user can activate and operate.
Juul Labs: PMTA Submissions To Date
November 2023: JUUL Secures $1.27B Capital Lifeline Amid Legal Battles and Market Share Slump
Embattled e-cigarette maker JUUL Labs has raised $1.27 billion in new funding3 from a total offering amount of $1.6 billion. The vital capital injection comes as the company continues to cut jobs and seek financing alternatives to remain solvent while navigating widespread marketing litigation and U.S. FDA Marketing Denial Orders (MDOs). According to recent Nielsen convenience store data, JUUL’s U.S. market share in tracked channels has dropped to the mid-20s – a steep fall from its peak in the mid-70s. Share losses re-accelerated following the FDA’s initial MDOs issued in June 2022.
Despite these headwinds, the massive funding round demonstrates that investors remain convinced on two “life-or-death” fronts for the franchise:
– FDA Authorization: Confidence that marketing orders will eventually be granted by the FDA, or at least secured for the underage access-restricted JUUL2 device, for which a PMTA was submitted in July 2023.
– Import Protection: Belief that efforts by competitors NJOY and Altria to block U.S. imports of JUUL products will ultimately fail.
