A U.S. federal court certified a class of direct purchasers of Juul Labs, Inc. products in California, allowing claims against Altria Group, Inc. over its 2018 $12.8 billion investment for a 35% stake in Juul, according to Law 360. Judge William H. Orrick cited “common, predominant questions” and a strong inference of class-wide impact, finding class resolution preferable to individual suits, while purchasers may opt out. Plaintiffs allege the investment led Altria to exit the e-cigarette market, reduce product variety, and raise prices.
Law 360 said the direct purchaser class covers those buying Juul products from October 5, 2018, to the present. Judge Orrick rejected arguments that separate contracts and pricing arrangements make named purchasers atypical, noting claims are typical across the class and representatives are adequately motivated. An imperfect understanding of class membership does not undermine adequacy so long as representatives understand the claims and responsibilities.
Indirect purchaser and reseller classes were also certified, though plaintiffs from Arkansas, South Carolina, Tennessee, and Virginia were excluded due to state law restrictions. The indirect purchaser class covers Juul pod purchases for personal use from October 25, 2018, to March 29, 2024, and the indirect reseller class covers purchases for resale from December 1, 2018, to March 31, 2025. The FTC had previously challenged Altria’s Juul stake but dropped its case in 2023 after the company fully unwound its investment.