Electronic cigarette maker Juul Labs won a last-minute suspension of a federal ban Friday afternoon after an appeals court granted a temporary suspension of the Food and Drug Administration order banning the sale of their products.
According to court documents, according to court documents, the convulsive vaping company was considering bankruptcy before a group of U.S. Court of Appeals judges for the DC Circuit granted Juul’s request to delay the prohibition.
The decision gives the court time to hear arguments and was not a decision on the merits of the case, the judges wrote.
The company had argued that it would suffer irreparable damage if the stay was not granted and noted that there are still similar e-cigarette products on the market.
“The FDA’s decision is arbitrary and capricious and lacks substantial evidence,” Juul said in the presentation, according to the Wall Street Journal.
The Post has contacted Juul and the FDA for comment.
Juul was considering bankruptcy just a day after the feds rejected his offer to continue selling certain e-cigarettes and pods, the Journal reported, citing sources familiar with the matter. This presentation would mark an impressive drop for a company that once garnered a $ 38 billion valuation before a series of regulatory crackdowns.
Juul Labs has argued that the FDA ban would do irreparable harm. Bloomberg via Getty Images
The FDA’s decision to ban Juul followed a push for years between lawmakers and other public figures to crack down on the harmful effects of a youth vaping trend.
Juul’s presentation argued that the FDA issued the ban after “immense political pressure from Congress once it became politically appropriate to blame.” [Juul] for youth steaming, although many of its competitors now have a larger market share and much higher child use rates. “
The FDA said its ban applied to the Juul device and “all of its products currently marketed” in the U.S., including pods with nicotine concentrations of 5% and 3%.
The FDA argued that Juul had the opportunity to provide evidence that supported its application to continue selling products, but did not meet the requirements.
“As with all manufacturers, Juul had the opportunity to provide evidence that demonstrated that the marketing of its products meets these standards,” said Michele Mital, acting director of the FDA’s Tobacco Products Center.
“However, the company did not provide this evidence and left us with important questions. Without the data needed to determine the relevant health risks, the FDA issues these marketing denial orders,” Mital added.
The FDA ban applies to all Juul products. Boston Globe via Getty Images
Immediately after the ban, Juul regulatory director Joe Murillo said the company did not agree with the decision and planned to appeal.
“We intend to seek a stay and are exploring all of our options under FDA regulations and law, including appealing the decision and contacting our regulator. We remain committed to doing everything in our power. power to continue serving the millions of American adult smokers who have successfully used our products to quit combustible cigarettes, which continue to be available on market shelves across the country, ”Murillo said.
Juul currently accounts for approximately 50% of the e-cigarette market. According to reports, some consumers rushed to stock up on products that were still on the market after the ban was announced.
Juul faced regulatory crackdown following allegations that its products were aimed at underage users, a claim the company denied.
In an attempt to address federal scrutiny, Juul had already withdrawn his flavored e-cigarettes from the market. But Juul has faced many lawsuits over allegations that it marketed its products to teens.
While e-cigarettes and other vaporization products were billed as a healthier alternative to traditional tobacco products, hundreds of people have died or been hospitalized across the country for the trend-associated lung disease.