Juul Labs Inc. convinces federal court to grant an emergency order to block the Food and Drug Administration'sdecisionDid. Tobacco products from the US market.
The ban was "administratively" while the U.S. Circuit Court of Appeals in Washington on Friday fully appealed that Juul's lawyers had decided that the FDA had to stop selling the product. He said it should be "maintained". Earlier this week, FDA officials refused to put the ban on hold while waiting for Juul's appeal, according to court filings.
"The FDA's anomalous and illegal behavior requires JLI to suspend essentially all business operations immediately, justifying the urgent provisional remedy requested," Juul said. I submitted it to the court on Friday. In that order, the court said the appeal process would take place next month.
A representative of Juul, based in Washington, did not immediately respond to an email asking for comment on the federal court's decision to put the ban on hold.
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The FDA said in a statement On Thursday, Juul said it had to stop selling. You need to distribute the product, remove what is on the market, or risk coercion. According to FDA Commissioner Robert Caliph, the increased use of teenage vaping products has forced the agency to carry out a thorough review of e-cigarettes.
"Out of business"
Juul's legal action is due to reports that the company is considering filing for bankruptcy. The Wall Street Journal reported on Friday that the company may seek protection if relief from government bans is not available. Veteran bankruptcy lawyer Chuck Tatelbaum said it makes sense for Jul's executives to consider submitting Chapter 11. The FDA's ban "basically closes the company.
Washington-based Juul representatives didn't immediately reply to emails asking for comment.
Once a highly advertised startup, Juul's business has declined in recent years as regulators resented flavored e-cigarette products and marketed to underage users in litigation. Juul executives have categorically claimed that they have never targeted young people in their marketing. The company's sales fell by more than $ 500 million and forced workers to be fired.
"Arbitrary and whimsical"
Juul officials blame the FDA for banning its products as "arbitrary and capricious" in a 10-page filing. Did. They also claim that the agency did not consider all the evidence regarding their e-cigarettes before making the decision.
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“ According to the FDA Filing, we cannot confidently claim that there is a significant and urgent public interest in removing JLI's products from the market now, not after the court has considered FDA measures.
Juul's lawyer, Sean Griffin, said Thursday that he had asked the FDA's internal lawyer to suspend the ban until the company was able to submit a summary of the appeal, but they refused. Juul has experienced "confusion and other serious harm," and the company is concerned that "it was likely irreparable and was expected to continue to worsen."
Your stay in court may buy Juul at some point. Karl Tobias, a law professor at the University of Richmond, said it could take up to six months for both sides to submit briefs and discuss the case. "So, even if they put the case on the fast track, this may take some time."
The incident was Juul Labs v. FDA, 22-1123, District of Columbia (Washington) Circuit Court
ContactCharacters @ time.com.