WASHINGTON (AP) — A Juul Labs executive who was fired earlier this year is alleging that the vaping enterprise knowingly shipped 1 million tainted nicotine pods to consumers.
The allegation comes in a lawsuit
filed Tuesday by lawyers representing Siddharth Breja, a one particular-time
finance executive at the e-cigarette maker. The suit claims that Breja
was terminated soon after opposing enterprise practices, which includes shipping the
contaminated flavored pods and not listing expiration dates on Juul
The lawsuit does not specify the contamination problem or
how it occurred. Lawyers for Breja declined to elaborate on the problem
A Juul spokesman stated in a statement that the claims
are “baseless” and that Breja was terminated mainly because he failed to
“demonstrate the leadership qualities” essential for the job.
the greatest-promoting e-cigarette brand in the U.S., has been besieged by
criticism amid an explosion of underage vaping. The enterprise faces
a number of investigations by federal and state officials as properly as
lawsuits by households of teenagers who claim they became hooked on
nicotine via the company’s vapes.
Breja worked in Juul’s
worldwide finance division significantly less than 10 months. The lawsuit, filed in the
Northern District of California, seeks damages for lost salary, bonuses
and Juul stock, which it values at extra than $10 million.
BuzzFeed News very first reported the lawsuit.
describes a “reckless” and “win-at-all costs” culture at Juul,
mainly driven by the company’s former CEO, Kevin Burns, who was
replaced in a management shake-up final month.
Breja says he
discovered in March that some batches of nicotine answer employed in the
company’s mint pods had been contaminated. Breja claims that enterprise
management shipped roughly one particular million pods impacted by the problem and
failed to problem a recall or public announcement.
Juul’s spokesman rejected Breja’s account saying the enterprise “determined the item met all applicable specifications.”
Breja protested the selection to ship the pods, the lawsuit alleges, his
supervisor at Juul reminded him that “stockholders would shed
important private wealth ought to he make his issues public.”
lawsuit alleges that Burns “berated employees” to ramp up production of
mint-flavored pods, a move that “compromised top quality handle measures.”
The concentrate on mint came soon after the enterprise voluntarily pulled its mango,
fruit and other candy-flavored pods out of retail retailers, beneath stress
from wellness authorities.
The lawsuit alleges that Juul’s outdoors
consultants assured the enterprise that mint “given its fruity flavor,
would make up for any lack of sales of other flavored pods.”
have to have to have an IQ of five to know that when consumers do not discover mango
they acquire mint,” Burns told personnel, according to the lawsuit.
claims he was wrongfully terminated the week soon after raising his issues
about the contaminated mint pods. Due to the fact he had worked at the enterprise
for significantly less than a year he did not get enterprise stock that his lawyers
claim would be worth “eight figures at its existing valuation.”
an earlier conflict with Juul management, Breja says he urged executives
to add expiration or “best by” dates to the flavored pods.
lawsuit claims Burns rejected the thought, stating: “Half our consumers are
drunk and vaping like mo-fo’s, who the f— is going to notice the
top quality of our pods.”
Juul’s internet site states that its pods are intended for use “soon soon after obtain.”
month Burns was replaced by K.C. Crosthwaite, a former executive for
Altria, the Major Tobacco firm that owns a 35% stake in privately held
In the final two years, the San Francisco enterprise has grow to be
the principal target of a nationwide backlash against e-cigarettes, with
parents, politicians and wellness advocates blaming the firm for the
current vaping craze amongst young people today.
According to the most current
government survey, extra than 1 in four higher college students reported employing
e-cigarettes in the preceding month, regardless of federal law banning sales to
these beneath 18.
In a separate wellness problem, federal officials are
investigating extra than 1,600 circumstances of lung harm linked to vaping,
which includes practically 3 dozen deaths. Numerous individuals stated they vaped THC,
marijuana’s intoxicating chemical, but officials have not however implicated
any single item or ingredient.
Juul has created a series of
voluntary concessions in an work to climate the firestorm. It is halted
marketing and suspended sales of its fruit and dessert flavored pods.
The enterprise continues to sell mint, menthol and tobacco flavors.
Trump administration announced plans final month to take away practically all
vaping flavors from the marketplace, leaving only tobacco.
wellness advocates are concerned the administration could back away from
its program to ban mint and menthol, the most preferred flavors amongst youth.
month extra than 50 wellness groups, which includes the American Lung
Association and the American Academy of Pediatrics, sent a letter to
very first lady Melania Trump urging the administration to comply with via on
its initial proposal.
“If the target is to take away the e-cigarettes
that are most appealing to youth, any proposal that ignores mint and
menthol flavors falls quick,” the groups stated.
By Matthew Perrone