Juul is considering bankruptcy
SAN FRANCISCO— Juul Labs Inc. explored various options, including bankruptcy, after the U.S. Food and Drug Administration issued its marketing denial order (MDO).
While the company confirmed CSP on Oct. 4 that he had been considering filing for a Chapter 11 reorganization since June, a spokesperson said no decision had been made.
“As we continue to operate in the market and go through the FDA review process, we are exploring a variety of options, including various potential financing alternatives to protect our business and address the impact of the now-suspended FDA order so that we can continue to offer our product to adult consumers who have or are looking to give up traditional cigarettes,” the Juul spokesperson said. CSP. “We remain confident in our science and evidence and believe that we will be able to demonstrate that our products do in fact meet the legal standard of being ‘appropriate for the protection of public health’.”
The FDA banned Juul’s products from the market on June 23 after issuing MDOs for the San Francisco-based company’s Juul device and four types of Juulpods – Virginia tobacco-flavored pods with nicotine strengths of 5 % and 3% and menthol flavored pods in nicotine strengths of 5% and 3%. A Washington, D.C., appeals court and the FDA later stayed the decision, allowing the products to remain on the market while the Tobacco Product Marketing Application Review (PMTA) process ) from Juul is in progress.
That’s not the only challenge Juul has faced in recent months.
In September, the company agreed to pay $438.5 million to 34 states and territories to settle a two-year investigation into its marketing and sales practices. Then Altria, Richmond, Va., which owns a 35% stake in Juul, ended its non-compete agreement with the vaping company, freeing up to take on new vapor products.
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