By Timothy S. Donahue
Top Takeaways:
- Classes of direct and indirect purchasers expected in long-running Juul–Altria collusion suit.
- Altria warns multi-state damages would create “Frankenstein’s monster” framework.
- Case stems from 2020 lawsuit over $12.8 billion Juul investment; FTC later dropped its own complaint.
U.S. District Judge William H. Orrick indicated he is likely to certify classes of both direct and indirect purchasers in the antitrust lawsuit accusing Juul Labs and Altria Group of colluding to restrict competition in the U.S. e-cigarette market.
At a recent Zoom hearing, Orrick stated he had issued a tentative written ruling favoring certification and would finalize his decision in writing later. The move could enable thousands of consumers and distributors to pursue collective damages claims over the companies’ now-defunct commercial agreement.
Altria’s counsel, James Rosenthal, argued that variations in state law across 31 jurisdictions would make a unified damages model “unworkable,” warning it could lead to a “Frankenstein’s monster” of multi-state calculations. He also opposed splitting liability and damages into separate trials, stating it would require the defense to present expert testimony twice.
Plaintiffs’ attorney Elana Katcher of Kaplan Fox Kilsheimer argued that minor differences in state statutes should not prevent certification, emphasizing California’s role as Juul’s headquarters and a key market “during the conspiracy.” She stated that the California Cartwright Act provides a solid basis for liability and damages, law360 reports.
Filed in 2020, the lawsuit followed Altria’s $12.8 billion investment in Juul, a move later challenged as anticompetitive. The case was consolidated as In re Juul Labs Inc. Antitrust Litigation (No. 3:20-cv-02345) in the Northern District of California.
Over the next few years, parts of the case were dismissed or referred to arbitration, and in 2023 the Federal Trade Commission dropped its parallel administrative complaint after Altria divested its Juul stake.
Judge Orrick’s latest signal follows multiple interim rulings between 2021 and 2024, including arbitration orders and procedural dismissals, leaving class certification as the key unresolved issue. A final written order is expected soon and will determine how the case proceeds toward trial and damages assessment.
