Jewel will pay $1.7 billion to settle over 5,000 lawsuits

Electronic cigarette maker Jewel Labs will pay $1.7 billion to settle more than 5,000 lawsuits filed against it, according to a Wall Street Journal report based on people familiar with the matter.

The settlement signed earlier this week settles most of the lawsuits that brought the company to the brink of bankruptcy. Bejol is currently working to settle additional lawsuits filed against it by a number of general prosecutors. After the lawsuits are settled, the company will be able to sell or obtain a strategic investment, according to the insiders.

In June, the US Food and Drug Administration (FDA) ordered Joule stop sales in states claiming that the company did not provide enough evidence that e-cigarettes are safe. However, Jewel appealed the decision and the FDA froze the application.

Following the move, a decrease in the company’s sales was recorded. Jewel began preparing to file for Chapter 11 bankruptcy protection, but in November the company secured funding from some of the early investors that helped postpone the bankruptcy.