Juul Labs shipped one million contaminated pods, says ex-Juul executive

PUBLISHED BY
Anna Domanska



TAGS:


2 years ago




A former senior vice president of global finance at Juul Labs is alleging in a lawsuit filed on Tuesday that the San Francisco-based company sent to the market “approximately one million mint-flavored e-cigarette nicotine pods that it admits were contaminated.”

According to the lawsuit, Breja claims that he discovered during an executive meeting in March that some of the mint e-liquid was used to refill 250,000 kits, or a total of one million pods, that had already been shipped to retailers and customers.

The lawsuit, filed by Dhillon Law in the U.S. District Court for the Northern District of California on behalf of Siddharth Breja, alleges that Juul ignored his protests to issue a product recall for the contaminated Juul pods, “or at a minimum, issue a public health and safety notice to consumers.”

Tim Danaher, Juul Labs’ then CFO, told Breja he should remember his loyalty to the company after he continued to raise concerns in March that the company was violating the law and it would hurt its then-$38 billion valuation. About a week later, Breja was fired for misrepresenting himself as former chief financial officer at Uber. Breja says the claim was preposterous, and that he had accurately represented his former position as a CFO at Uber.

Juul Labs vaping

Breja claims that Juul Labs wanted to sell pods that were almost a year old, and when he urged fellow executives to add an expiration or best buy date, he was told by former CEO Kevin Burns that “half our customers are drunk and vaping like mo-fos, who the f–k is going to notice?”

The suit says Kevin Burns ruled the company in a “dictatorial manner and fostered a culture of silence.”

Management Shakeups at Juul Labs

News of the lawsuit comes the same day as Juul announces it plans to cut 500 jobs, or about 10% to 15% of its total headcount, and the departure of Tim Danaher.

The company also announced three more departures. Among them is Craig Brommers, chief marketing officer, David Foster, senior vice president of advanced technology, and Ashley Gould, chief administrative officer.

Juul Labs is currently facing an investigation by the Federal Trade Commission (FTC) in regard to how the company’s vaping device became so popular with underage teens.

The Trump administration plans to remove all flavored e-cigarettes from the market amid a surge in teenage vaping and vaping deaths.

Juul Labs is also being investigated by state and local enforcement officials, with ongoing inquiries being conducted by Attorneys General in Illinois, District of Columbia, Colorado, Connecticut and Massachusetts.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Bayer snaps up biotech firm Vividion Therapeutics for $2 billion

Bayer snaps up biotech firm Vividion Therapeutics for $2 billion

Bayer AG is in talks to buy Vividion Therapeutics in a roughly $2 billion deal, enforcing new IPO plans for Vividion.
1 hour ago
Auto Industry Leaders push EV plans to maintain leadership

Auto Industry Leaders push EV plans to maintain leadership

Auto Industry Leaders push EV plans ahead to raise new outcomes by 2030. Environmentalists also add to the bar by shaking things with vehicle emission rules by 2026.
4 hours ago
General Motors Q2 2021 Results Recap

General Motors Q2 2021 Results Recap

General Motors Q2 earnings and revenue missed Wall Street’s expectations even though the world’s leading automaker beat earnings projections.
24 hours ago
UK casts doubt over Nvidia’s Arm acquisition over security risks

UK casts doubt over Nvidia’s Arm acquisition over security risks

UK considers blocking Nvidia’s Arm acquisition due to potential risks to national security. The $40 billion takeover faces similar fate in America, China and the European Union.
1 day ago
PepsiCo relinquishes control of Tropicana for $3.3 billion

PepsiCo relinquishes control of Tropicana for $3.3 billion

PepsiCo will sell Tropicana and other juice brands to a private equity firm in exchange for pre-tax proceeds of 3.3 billion dollars.
2 days ago
Sanofi bets big on mRNA future with Translate Bio acquisition offer

Sanofi bets big on mRNA future with Translate Bio acquisition offer

Sanofi’s CEO Paul Hudson is dead serious about mRNA technology and capabilities with a $3.2 billion acquisition offer to Translate Bio.
2 days ago