Juul advertised on Nickelodeon and CoolMathGames — then paid $3B+ in settlements

Juul Labs launched in 2015 with a sleek USB-shaped device and nicotine salt pods that delivered a cigarette-like hit without the smoke. By 2018 it controlled over 70% of the US e-cigarette market and was valued at $38 billion after Altria bought 35% for $12.8 billion. The product was genuinely innovative — the mistake was the marketing.

Juul's early campaigns targeted exactly the audience it later claimed it was never after. The company bought ad space on Nickelodeon, Nick Jr., Seventeen magazine, CoolMathGames.com, dailydressupgames.com, and fifteen other sites aimed at middle and high school students. It hired young influencers, used young models in campaigns, and dispatched representatives to schools in July 2019 to tell students the product was 'completely safe.' Its eight sweet flavors — mango, crème brûlée, cool cucumber, fruit medley — were the ones teenagers cited as the reason they started.

The backlash was severe. By 2018, one in five US high school students was vaping, and Juul was the dominant brand. The FDA cracked down, states sued, and discovery in those lawsuits produced the internal documents showing the youth-targeting strategy. Between September 2022 and April 2023, Juul settled with nearly every US state and thousands of personal injury plaintiffs for a combined $3 billion plus, including $438.5 million in one multi-state deal, $1.2 billion in class-action settlements, and $462 million to six states and DC.

Altria's investment imploded alongside the litigation. It wrote down $4.5 billion in October 2019, cut Juul's valuation to $10 billion in 2020, $4.3 billion in 2021, $1.6 billion in 2022, and $450 million in July 2022 — 1.2% of what it had paid four years earlier. In March 2023, Altria walked away entirely, exchanging its stake for IP licensing rights.