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Analysts and investors are worried that Altria paid also considerably for its 35% stake in Juul, specifically offered all the scrutiny and lawsuits that the e-cig manufacturer is facing. Defending the terms of the deal, Willard stated that the e-cigarette industry wasn’t expanding considerably prior to Juul entered it, adding that Altria’s personal MarkTen items had hardly gained traction, prompting Altria to quit promoting them altogether. “I’m pretty pleased for the chance to make the investment and think it will spend dividends down the road,” he told analysts.

A Lawsuit Filed Against Juul/Altria Alleging Fraudulent Misinformation

Meanwhile, Juul is similarly taking some hits for striking the deal with Altria. Final month parents of a Florida teenager filed a lawsuit against Juul/Altria, alleging that their son has grow to be addicted to the Juul device and accusing the providers of fraud, negligence, and violation of the RICO statute.

The lawsuit was filed in the federal district court for the middle district of Florida, and is clearly a consequence of the deal. In truth a single of the initial complaints of the lawsuit is that given that Altria purchased a 35% stake in Juul, Juul’s infrastructure has been corrupted and is utilizing the identical fraudulent advertising and marketing measures that the tobacco business itself has utilized.

Study Additional: CNBC

 

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