Colorado Supreme Court: State prosecutors cannot sue e-cigarette executives personally

The Colorado Supreme Court ruled last week that the Colorado Attorney General Office's lawsuit against electronic cigarette manufacturer JUUL cannot include four of the company's executives. 

The AG's Office hoped to hold both the company and the four executives liable for alleged deceptive marketing practices which targeted adolescents and teens. Colorado filed its lawsuit against the company in 2020 after a yearlong investigation into the company's advertising downplaying its products' nicotine concentration and claims that the product was a healthy alternative to traditional cigarette smoking. 

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In Monday's ruling, Justice Richard L. Gabriel wrote that the AG's Office's prosecutors provided "no facts supporting a conclusion that any of the defendants expressly aimed their conduct at Colorado."  

JUUL conducted its marketing campaign with national scope, Gabriel added. While potentially misleading advertisements were displayed in Colorado, none of them focused specifically on Colorado's youth in contrast to those in others states, he explained. Plus, none of the four executives attended "sampling" events that took place in Colorado.

"Had the record shown that these defendants individually targeted Colorado, among other states, then our conclusion might have been different," Gabriel wrote. 

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Six of the seven state justices were in agreement with the ruling. The seventh did not participate in the decision.

The ruling reversed a district court decision which rejected a request for dismissal by the executives' attorneys. 

The Colorado Supreme Court's ruling is final. There is no opportunity for appeal. 

The four executives - Adam Bowen, James Monsees, Nicholas Pritzker, and Riaz Valani - are all California residents.

The Colorado AG's Office, headed by Phil Weiser, responded with a statement to CBS4:

Even though the court ruled that JUUL executives cannot be sued in Colorado, the State's efforts to hold JUUL (the company) accountable are unaffected by this opinion. Attorney General Weiser will continue to press forward with the State's lawsuit to remedy the harm the company caused with its deceptive marketing and messaging campaign that targeted youth and downplayed the health risks of its e-cigarettes.  

Last than a month ago, JUUL reached a settlement agreement with 33 states and Puerto Rico. The company agreed to pay $438/5 million to be paid out over six to 10 years.

JUUL previously settled lawsuits in Arizona, Louisiana, North Carolina and Washington.  

The company still faces litigation from nine states, including Colorado, plus potential private lawsuits. A case filed in 2019 against JUUL by a Colorado teenager in still in the California federal court system three years later. 

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In May, Colorado's state legislature reconsidered a 2020 bill prohibiting the sale of flavored nicotine products in the state. It failed in the Senate.

However, the U.S. Food and Drug Administration banned JUUL's e-cigarettes from the American marketplace the following month.