The investigation by nearly three dozen states focused on the company's sales and marketing practices that they claim fueled the teen e-liquid crisis.
The company used social media and gave out samples to appeal to young people. 45 percent of the company's followers were under the age of 17 and the company had a "porous" age verification system.
This will go a long way in stemming the flow of youth e-liquid. We can't say that it will stop youth e-cig use. It is continuing to be a problem. It's a big problem. We took a lot out of what was once a market leader.
The settlement is a big part of our commitment to resolve issues from the past. Our current business practices are aligned with the terms of the agreement.
The company didn't acknowledge any wrongdoing in the settlement.
The company is forbidden from marketing to youth, from funding education in schools and from misrepresenting the level of nicotine in its products. When the vaping crisis was at its peak a few years ago, the company withdrew many of its flavors because of public pressure.
The company's ability to sell its products has been in doubt recently. The FDA denied the company's request for marketing authorization to sell the vapes due to lack of evidence to show they would benefit public health. There was insufficient and conflicting data from the company. The company was able to get a temporary reprieve.
Two million adult smokers were helped by the company to quit cigarettes, and it took exception to the agency's conclusions about chemicals in its products. The F.D.A. said that it would allow the products to remain on the market pending further review.
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