Altria and Philip Morris USA pay $1.4 billion to Harris County for suing them

The tobacco company and its subsidiary Altria were sued by Harris County, Texas, for promoting JUUL e-cigarettes to minors. A $7 million settlement allowed them to settle the lawsuit. This agreement joins the list of settlements reached for other defendants from the tobacco and vaping industries.

In 2021, Harris County, Texas, filed a lawsuit against Altria and its subsidiary Philip Morris USA. The third-most populous county in the United States, Harris County accused the tobacco company of targeting minors in its marketing of JUUL products. Altria was sued for being responsible for expanding the range of flavors for JUUL products, which could attract children to e-cigarettes. Altria had acquired a third of JUUL's capital in 2018 before selling it in early 2023 to avoid being involved in the numerous legal actions filed against JUUL.

A $7 million financial transaction

After several years of litigation, a federal judge granted Altria and Philip Morris USA the option to dismiss the lawsuit in exchange for compensation to Harris County. On October 31, 2023, the Commissioners Court set the amount at $7 million (€6.5 million), down from the initial estimate of $20 million (€18.6 million).[1]The Harris County District Attorney, however, considered the settlement a clear victory against the manufacturer.

Financial transactions to avoid convictions

Tobacco and vaping companies have often resorted to financial settlements to end legal proceedings. The most famous is the Master Settlement Agreement, signed in November 1998 between four major US tobacco companies (Philip Morris, RJ Reynolds, Brown & Williamson, and Lorillard) and 52 US states and territories. It led to a settlement initially set at $368 billion.[2], as well as many other provisions (restriction of advertising, publication of internal documents, launch of the Truth Initiative organization)[3]Complaints filed in 2000 by the European Commission for the organization of contraband by cigarette manufacturers Philip Morris, RJ Reynolds and Japan Tobacco International, for their part, gave rise to transactions in 2004.[4] and in 2007[5]The financial settlements obtained generally only compensate for a tiny part of the actual damage, but often constitute a way for the applicants to conclude long, costly and uncertain procedures.

Altria had already been implicated in December 2020 in Minnesota for the improper marketing of JUUL to minors. The Minnesota Attorney General accused the manufacturer of selling JUUL products containing more nicotine than traditional cigarettes or other e-cigarette brands. Altria was able to settle these charges in March 2023, after paying a sum of US$60.5 million (€56.2 million).

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[1] Hensley N, Altria and Philip Morris pay $7 million to settle Harris County vaping lawsuit, Houston Chronicle, published November 2, 2023, accessed November 6, 2023.

[2] Inside the Tobacco Deal, PBS/Frontline, accessed November 6, 2023.

[3] The Master Settlement Agreement: an overview, Public Health Law Center, January 2019, 15 p.

[4] Quentin F, Smuggling: Philip Morris prefers to compromise, RFI, published November 2, 2023, consulted November 6, 2023.

[5] Cigarette smuggling: Brussels reaches $400 million settlement with Japan Tobacco, Les Echos, published December 14, 2007, consulted November 6, 2023.