IMMEDIATE ADOPTION
Number
240558
Version
ORIGINAL
Reference
161061, 190458, 190817, 211799, 220562, 221904
Sponsor
ALD. JACKSON
Title
Resolution authorizing the acceptance of funds from the Juul Labs, Inc. lawsuit.
Analysis
This resolution authorizes the acceptance of funds from the lawsuit entitled In re: Juul Labs Inc., Marketing, Sales Practices, and Products Liability Litigation, Case No. 3:19-md-02913, pending in the U.S. District Court for the Northern District of California in the total amount of $668,935.58.
Body
Whereas, The City of Milwaukee filed a lawsuit against JUUL Labs, Inc., et. al., on December 21, 2020, in the U.S. District Court for the Northern District of California, Case No. 3:2020-cv-09269; and
Whereas, The City’s claim was subsequently consolidated in a multi-district litigation action, In re: Juul Labs Inc., Marketing, Sales Practices, and Products Liability Litigation, Case No. 3:19-md-02913, pending in the U.S. District Court for the Northern District of California; and
Whereas, The City asserted various claims against the defendants that alleged that as a result of defendants’ conduct, youth e-cigarette and vapor use escalated, causing a public health crisis; and
Whereas, The City sought damages, and any other eligible monetary relief, to address, remedy and abate the youth e-cigarette and vaping public health crisis in Milwaukee; and
Whereas, Pursuant to and following extensive litigation and discovery, defendant JUUL Labs, Inc. made an offer of settlement for all potential settling governmental entities in the multi-district litigation, including the City of Milwaukee; and
Whereas, Counsel for the parties have reached an agreement to settle the above-referenced lawsuit for a total amount of $2,473,772.52 to be paid to the City subject to approval by the Common Council; and
Whereas, The total amount shall be paid in installments, with the first installment amounting to 50% of the total, and smaller increments paid thereafter; and
Whereas, The total amount may increase, as there is a litigation reserve; and
Whereas, The City Attorney recommends and the Common Council deems it expeditious and just to settle this lawsuit; and
Whereas, The appropriation of funds received will be determined via subsequent legislation; and
Whereas, The City received a one-time payment from the Altria defendant in the amount of $668,935.58; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that a settlement of $668,935.58 from the lawsuit entitled In re: Juul Labs Inc., Marketing, Sales Practices, and Products Liability Litigation, Case No. 3:19-md-02913, is authorized; and, be it
Further Resolved; The funds shall be sent to the JUUL Labs Settlement Proceeds Fund 987038-0180-9990-VS000240000; and, be it
Further Resolved, That the City Comptroller is authorized and directed to establish the necessary accounts and accounting procedures to carry out the intent of this resolution.
Requestor
City Attorney
Drafter
Alex Highley
LRB180078-1
July 29, 2024