Drewe Raimi was lying in bed, casually scrolling TikTok when a notification popped up: Venmo’s familiar cha-ching sound announced a deposit of $3,456.44. At first, she thought it might be a spam message or a friend’s prank. But the money was from Juul Labs Inc., the company that had transformed vaping into a must-have accessory for millennials and Gen Z.
“I filled out a class-action claim with some friends back in 2021, during my senior year of college. I never thought much of it,” said Raimi, now 23 and living in New York. “We shared the lawsuit details in our group chat for a laugh, just to see what would happen.”
The lawsuit claimed that Juul’s products, including vapes and flavored nicotine pods, were unlawfully marketed to minors. It also alleged that consumers were misled about their addictive nature. Juul and its former parent company, Altria, settled for over $300 million, leading to more than 14 million claims filed by customers before the deadline in February. According to NBC News, payments began to roll out this month, with 842,000 eligible recipients receiving amounts ranging from hundreds to thousands of dollars.
On TikTok, users shared their surprise payouts, with one woman exclaiming, “Whoever told me to sign up for the Juul class action, I love you so much!” Her payout exceeded $7,000. Another user posted, “When you forgot you signed up for the Juul lawsuit two years ago and woke up to the bag in your Venmo this morning.”
Some, however, questioned whether the payouts were worth the years spent grappling with nicotine addiction. One TikTok user shared her payout of $288.03 with the caption, “When you wake up to the best present but had to deal with a crippling nicotine addiction for years to get it.” Raimi mentioned that while she used Juul occasionally in college, she doesn’t consider herself addicted.
The motivations behind these claims remain ambiguous. Was it merely a “joke” to file claims for products they never used, or did they genuinely not expect to receive such substantial payouts?
Christine P. Bartholomew, a law professor at the University at Buffalo, cautioned against public boasting regarding potentially false claims. “That can be considered fraud on the court,” she explained. “Individuals could face serious legal consequences.”
Court rulings in class-action lawsuits can appear trivial, often resulting in meager payouts for plaintiffs. Earlier this year, for instance, some Caribbean Cruises customers received just $10 each after unwanted robocalls, while others got about $3 from Right Guard over a carcinogen in its spray deodorant. Yet Bartholomew insists that significant settlements like Juul’s ultimately serve the public good. “People often say that the stamp they used to mail their claim is worth more than what they might receive. This case reminds us that the story isn’t always so straightforward.”
In 1998, the four largest tobacco companies in the U.S. settled with the attorneys general of 46 states, agreeing to pay $206 billion over 25 years to cover medical costs linked to smoking-related illnesses, though that payment did not go directly to individual smokers. The Juul settlement, however, holds the company accountable for its marketing practices toward underage customers. Dr. Robert K. Jackler from Stanford Medicine noted, “This was a carefully orchestrated campaign to attract young people and to encourage them to promote Juul among their peers, which proved remarkably effective.”
While Altria denied the lawsuit’s allegations, Juul did not admit to any wrongdoing in the settlement.
Founded by two Stanford graduates and former smokers in 2005, Juul initially aimed to provide a healthier alternative for adult smokers. However, its sleek design and flavored offerings inadvertently appealed to a younger demographic, aided by savvy marketing tactics involving social media influencers. By 2018, a group of senators, including Chuck Schumer and Elizabeth Warren, publicly condemned Juul for putting a new generation at risk for nicotine addiction.
Jackler pointed out that the last few years have seen an influx of lawsuits against Juul, with many now settled. He emphasized that the class-action lawsuit serves as a clear warning to the company: it cannot profit from its unethical practices without facing repercussions.
As for whether the surprise Juul payout will shift young people’s perceptions of nicotine use, Raimi shared her personal stance. “I tried vaping and didn’t love it. I’ve never smoked a cigarette,” she remarked. Yet, she empathizes with minors who may have developed addictions and believes they deserve some form of compensation. “If you’re a minor and unaware of the true nature of what you’re being sold, it’s tough to make decisions that could impact your future,” she said.
For now, Raimi is undecided about how to spend her unexpected windfall. Her parents suggest investing the money, friends advocate for treating herself to something fun, while random TikTok users jokingly ask for cash. “It’s free money,” she laughed. “I’ll probably end up using it for rent.”
