Arkansas to receive $13.6M in JUUL Labs agreement

The resolution of the agreement follows a two-year bipartisan investigation into the e-cigarette manufacturer's marketing and sales practices.

In addition to the financial terms, the settlement would force JUUL to comply with a series of terms, severely limiting their marketing and sales practices.

According to a press release from Rutledge's office stated Arkansas will receive over $13.5 million over five years.

"It is the fault of companies like JUUL who spread misinformation and incentivized youth to buy vaping products that created this epidemic that continues to be a prevalent problem in our schools and neighborhoods," Rutledge said. "After a two-year investigation, I am holding JUUL accountable for their actions with the assurance that they will comply with the law in the future because Arkansans deserve to be protective from deceptive business practices."

JUUL was once the dominant manufacturer in the vaping market. Official documents show the multistate investigation revealed that JUUL rose to this position by willfully engaging in an advertising campaign that appealed to youth.

The investigation also further revealed that JUUL's original packaging was misleading in that it did not clearly disclose that it contained nicotine and implied that it contained a lower concentration of nicotine than it actually did.

Officials said the company also misrepresented that its product was a smoking cessation device without FDA approval to make such claims.

Rutledge's office said the states are in the process of finalizing and executing the settlement documents and the process could take three to four weeks.

The settlement amount will be paid out over a period of six to ten years, with the amounts paid increasing the longer the company takes to make the payments, according to officials.

However, if JUUL chooses to extend the payment period up to ten years, the final settlement would reach $476.6 million.