What a ‘racket’: Justice Dep’t sues Juul

E-cigarette maker Juul Labs and Philip Morris have been sued for illegally marketing nicotine-delivery devices to minors and deceiving consumers about the risks of vaping.

The lawsuit alleges that Juul and Philip Morris violated the Racketeer Influenced and Corrupt Organizations Act, adopting the tobacco industry’s past use of catchy ad campaigns aimed at kids. The Justice Department invoked RICO to sue the industry two decades ago.

The lawsuit was filed on behalf of Christian Foss, 19, who says he became addicted to nicotine and suffered worsening asthma symptoms after he began using Juul’s device at 16, and seeks to represent all Illinois minors who used it.

“Mimicking Big Tobacco’s past marketing practices, defendants prey on youth for financial gain,” according to the lawsuit, filed Monday in federal court in Chicago. Philip Morris, which is also named as a defendant, recently bought a 35 percent stake in Juul for $12.8 billion.

Juul didn’t respond to an e-mail seeking comment on the lawsuit.

One of Silicon Valley’s most valuable privately held companies, Juul is facing increased pressure over its sleek vape pen’s popularity with underage users. It has tried to crack down on teen use, including improving its online age-verification process, deleting social media posts glamorizing vaping, and stopping the sale of some fruit- and dessertflavored products in retail stores.

Still, Juul’s pen remains popular with young people, and the company has been a central figure in an investigation into youth e-cigarette use by a panel of the US House Oversight and Reform Committee.