RALEIGH, N.C. — State Attorney General Josh Stein individually sued the founders of Juul, while opening a separate statewide investigation into electronic-cigarette companies. 

 

What You Need to Know 

  • AG individually sued Juul founders, James Monsees and Adam Bowen
  • The lawsuit is filed under the Unfair or Deceptive Practices Act
  • The AG accused founders of personally profiting from teen nicotine addiction
  • There is a now a statewide investigation looking at the e-cigarette supply chain
  • Fifteen retailers were sent civil investigative demands 

 

The announcement is another step by the AG to curb the youth vaping epidemic in North Carolina, following his first in 2019 and a $40 million settlement reached with Juul earlier this year. Stein said while that sum of money isn’t anything to scoff at, going after the Juul founders, James Monsees and Adam Bowen, will do even more.

“Much of that money that Juul made was sucked out of the company by its founders and early investors,” Stein said at a news conference in Raleigh Tuesday afternoon. 

He said Bowen and Monsees have each personally profited from addicting children to nicotine.

Stein says for too long the e-cigarette industry has been freely allowed to market flavors and products to teenagers. As a result of the June court order with Juul, the AG said the famed vaping company will not bring any new flavors to market and will not be marketing to teenagers anymore. 

However, he said just because Juul is “playing by the rules” didn’t eliminate the market they had already created. 

“We are concerned other companies are filling the vacuum created by Juul,” Stein said. The statewide investigation targeted companies like Puff Bar, a creator of disposable vaping devices, to protect children from "kid-friendly flavors," weak age verification systems and branding that appeals to minors.

“That’s why I am investigating companies in the e-cigarette supply chain from manufacturers, to distributors, to North Carolina retailers,” Stein said. 

The AG also issued civil investigative demands to 20 companies, including Puff Bar; 15 vape retail stores; three distributors; and one online seller.

Retailers at the center of the investigation were located in Charlotte, Raleigh, Greensboro, Winston-Salem, Durham, Asheville and Wilmington. Several of these stores Stein pointed to for being in proximity to middle and high schools.

Stein compared youth vaping to the opioid epidemic. He said what the Juul founders did is no different than what the Sackler family did while running Purdue Pharma through their mass manufacture and distribution of OxyContin.

"The reason we are bringing this action against Monsees and Bowen is because they, like the Sacklers, created a company that had a terrible impact on people's lives. They put their desire for money over the health of America's children, and that's not only immoral--it's unlawful," Stein said.

In news related to the AG’s announcement, the legislature voted to approve the state budget, some of which included settlement money from Juul will be spent.