A federal judge in San Francisco has ruled that most of the racketeering claims against Juul Labs Inc. and Altria Group Inc. can move forward, reports Bloomberg.
The racketeering claims that were brought against Juul and Altria Group largely by consumers, local governments and school districts are set to go ahead. The federal judge had dismissed the claims back in October but had given the plaintiffs the option to revise their complaint. The new filing advances a new RICO argument about the companies’ conduct, reports Bloomberg. Individual founders and directors of Juul have now become the main focus as the plaintiffs claim they used the company for an “unlawful pattern of racketeering.” One of the misleading advertisements in question is the company’s “Vaporized” campaign in which Juul failed to state the nicotine content and potency, according to the plaintiffs.
According to U.S. District Judge William Orrick, Altria and the individual defendants can be held liable rather than Juul as a company, reports Bloomberg.