Arizona's attorney general has won a $22.5 million judgment against an e-cigarette company in New Jersey, and the court has ordered a permanent ban on the company from selling products in the state, AP reported.
Justice Minister mark brnovich announced the verdict on eosmoke on Friday. The company did not defend a consumer fraud lawsuit filed earlier this year, and a judge in Maricopa County High Court issued a default judgment.
At a news conference on Tuesday, brnovich announced lawsuits against Juul and eosmoke, suggesting that they play an important role in the smoking of teenagers.
It is not clear whether Arizona will be able to enforce the verdict.
Eonsmoke's website statement said it had ceased operations due to the rapid decline in market conditions, coronavirus, regulatory and competitor litigation.
Eosmoke did not respond to an associated press request for comment on the Arizona lawsuit.
In January, brnovich sued eosmoke and electronic cigarette giant Juul labs, saying both companies had violated state consumer fraud laws and targeted young people with their flavored products.
Juul labs suspended the sale of its flavored nicotine products, while eonsmoke doubled its efforts to sell its flavored cigarettes, the lawsuit said.
In a letter in October 2019, the U.S. Food and Drug Administration warned eonsmoke that its 96 flavored products were illegal under federal law.
The lawsuit against Juul labs continues, and the company is defending brnovich in court. In court documents, it denied targeting minors through marketing or advertising.
Juul said in January that it focused on working with the attorney general, regulators, public health officials and other stakeholders to combat underage use and convert adult smokers from combustible cigarettes.
Juul has stopped advertising and orders for all seasoning products.
Both companies targeted young people and contributed to an explosive growth in the use of e-cigarettes by teenagers, the lawsuit said. Several other states have filed similar lawsuits. The lawsuits require both companies to return profits and impose a $10000 fine for each violation of the state's consumer fraud act.
In a statement, brnovich said eosmoke was being investigated for illegal acts in Arizona, including selling flavored tobacco bombs to children.