MO Altria Group Inc

By Dean Seal

NJOY Holdings, the vaping pioneer that Altria Group acquired this year, has filed a lawsuit against nearly three dozen makers and sellers of what it calls illicit e-vapor products.

The suit filed in California federal court on Thursday targets 34 foreign and domestic manufacturers, distributors and online retailers of disposable e-vapor products that are allegedly being unlawfully marketed and sold in California and elsewhere.

The companies make and market products that both violate California's ban on flavored tobacco products and are illegal under federal law, according to the suit. The products also illegally compete against companies that comply with state and federal laws, NJOY said.

NJOY is seeking a nationwide injunction against the import and sales of these products, along with punitive and compensatory damages. The litigation alleges unfair competition, two counts of false advertising and a violation of the Prevent All Cigarette Trafficking Act of 2009, which prohibits criminal organizations from profiting on the illegal sale of tobacco products.

All of the foreign defendants named in the suit are based in China. Domestic defendants come from nine different states and include brands such as Elf Bar, Juice Box and Puff Bar.

None of the defendants have received premarket authorization from the U.S. Food and Drug Administration and in many instances haven't even applied for it, NJOY said. Some have already received warning letters from the FDA stating that their products can't be sold without authorization, and others are the subject of an FDA-ordered import alert authorizing U.S. customs officials to seize their products, according to the company.

Despite California's ban on flavored tobacco products going into effect last December, those products still make up more than 97% of the state's market, Altria said, citing a recent study it commissioned.

Murray Garnick, Altria's general counsel, said the lawsuit is meant to spur action from the FDA.

"These companies knowingly violate federal and state laws and need to be held accountable," he said in a statement. "Today there are two markets--one for those who play by the rules and one for those who flagrantly ignore them."

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

October 19, 2023 12:24 ET (16:24 GMT)

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