CHICAGO — The City of Chicago announced Friday that a $23.8 million settlement has been reached with JUUL Labs regarding claims they marketed their products to juveniles.

The agreement resolves a lawsuit brought by Chicago officials in May 2020. In it, they alleged JUUL violated ordinances by engaging in a marketing campaign that targeted minors and sold products without implementing strict age verification requirements.

According to the settlement, JUUL has agreed to pay Chicago $2.8M within 30 days of the execution of the agreement. The city would receive an additional $21M payment later this year and may potentially receive up to $750,000 additional, court-awarded payments.

“E-cigarette businesses cannot be allowed to come in our city and boost their profits at the expense of minors. The use of any tobacco products, including e-cigarettes, among youth is a serious public health concern — to CDPH and parents across Chicago,” CDPH commissioner Dr. Allison Arwady said. “We’ve made remarkable progress over the last twenty years in reducing smoking, and now with these resources we’re ready to continue the fight against vaping.”

JUUL introduced their e-cigarettes or vapes, in 2015.