The Mercury News

Juul reportedly sold tainted nicotine pods

Former executive says firm refused to recall product when told of problem

- By Sheila Kaplan and Jan Hoffman

A former top executive of Juul is alleging that the electronic cigarette giant sold at least 1 million contaminat­ed mint-flavored nicotine pods — and refused to recall them when told about the problem in March.

In a lawsuit filed in the U.S. District Court for the Northern District of California on Tuesday, Siddharth Breja, who was senior vice president for global finance, claims he was fired March 21 in retaliatio­n for whistleblo­wing and objecting to the shipment of the contaminat­ed and expired pods and other illegal and unsafe conduct that “has jeopardize­d and continues to jeopardize public health and safety and the lives of millions of consumers, many of them children and teens.”

Breja detailed a culture of indifferen­ce to safety and quality-control issues among top executives at the company and quoted the then-Chief Executive Kevin Burns saying at a meeting in February: “Half our customers are drunk and vaping” and wouldn’t “notice the quality of our pods.”

Burns, who left the company in September, issued a statement Wednesday afternoon strongly disputing the quote. “I never said this, or anything remotely close to this, period,” the statement said. “As CEO, I had the company make huge investment­s in product quality, and the facts will show this claim is absolutely false and pure fiction.”

The lawsuit was first reported by BuzzFeed News.

Ted Kwong, a Juul spokesman, dismissed Breja’s claims as baseless.

“He was terminated in March 2019 because he failed to demonstrat­e the leadership qualities needed in his role,” Kwong said. “The allegation­s concerning safety issues with Juul products are equally meritless, and we already investigat­ed the underlying manufactur­ing issue and determined the product met all applicable specificat­ions.”

This lawsuit is only the latest in a growing series of cases against Juul being filed around the country by school districts and individual­s. Earlier this month a federal judicial panel gathered together the farflung cases before Judge William H. Orrick in the Northern District of California in San Francisco, who will oversee them. The claims typically focus on personal injury for vapingrela­ted illnesses or false marketing. The panel estimated that there are about 50 lawsuits so far.

Breja’s lawsuit did not specify what the contaminan­t in the nicotine pods was. The allegation­s detail that the shipment of tainted mint-flavored pods resulted from a series of decisions by Juul that created a huge demand for that flavor.

In November 2018, Juul, under scrutiny by the Food and Drug Administra­tion, announced it would no longer sell its teen-friendly flavored pods in retail stores, making them available only online. But while Juul moved its dessert flavors off the shelves, it continues to sell menthol and mint in retail stores. Breja alleged that with popular flavors like mango and creme no longer readily accessible, customers began embracing menthol and mint with fervor, so much so that demand outstrippe­d supply.

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