Parties in multiple vaping injury cases meet for 1st time

SAN FRANCISCO -- Parties in the consolidated Juul Labs Inc. cases met for the first time Friday before U.S. District Judge William H. Orrick to discuss how they should work up the sprawling multidistrict litigation over alleged vaping injuries.

Two major factions emerged at the hearing, disagreeing over how to approach the cases filed by individual claimants, proposed classes and local governments.

One side, led by Lieff Cabraser Heimann & Bernstein LLP partner Sarah London, supported a joint track for all the cases, given there's significant overlap in the claims and legal theories. It proposed appointing a large leadership structure composed of 22 attorneys.

The other, led by Esfand Nafisi who filed the first class action in April 2018, argued for the appointment of separate, smaller teams to lead the class and individual cases. Larger teams composed of individuals with undefined roles will lead to "diluted decision-making, inefficiencies and increased costs," the Migliaccio & Rathod LLP attorney argued.

The cases concern accusations Juul sold defective products with misleading labels, engaged in deceptive marketing practices and targeted minors. There are 163 lawsuits in the consolidated litigation with roughly 40 others in state court, which have been grouped together in Los Angeles County Superior Court.

Juul has denied all accusations. It has maintained recent vaping injuries are mostly a result of products containing cannabis, which it does not sell, according to court filings.

Juul e-cigarettes are compact, USB-shaped devices that vaporize nicotine liquid. In re: Juul Labs, Inc., Marketing, Sales Practices, and Products Liability Ligation, 19-MD02913 (N.D. Cal., filed Oct. 2, 2019).

More than 100 attorneys packed Orrick's courtroom to argue how to develop the litigation Friday and be appointed to leadership groups. Lawyers had two minutes to state their cases with a buzzer going off at the end.

The "consensus plaintiffs," led by London, have been meeting for nearly six months and argued lead attorneys in the consolidated litigation need to work together to avoid duplicating efforts and advance common issues to get the claims to trial as quickly as possible.

London said she wants test cases to be ready for trial by 2021. "We are in the middle of a crisis," she said.

London, Adam Gutride of Gutride Safier and Michael London of New York-based firm Douglas & London were proposed as lead attorneys. They would be backed by nine attorneys on an executive committee and 10 attorneys on a steering committee, according to the team's proposal emphasizing the diversity of representation, location and interests in the groups.

Nafisi argued the leadership structure suggested by Lieff Cabraser Heimann & Bernstein will focus on pursuing individual claims at the expense of his class action, which has already been developing for over a year. Orrick should instead appoint leadership teams to ensure individual claimants can advance test cases while class action plaintiffs move forward with class certification, he continued.

Juul attorneys sought to limit the number of lawyers appointed to leadership groups to avoid unnecessary complications and costs in court filings.

The e-cigarette maker is valued at roughly $38 billion, according to financial analysts at Wells Fargo.

Altria, the parent company of Phillip Morris, acquired in December a 35% stake in Juul for $12.8 billion. Former company executive K.C. Crosthwaite was appointed its CEO in September.

Juul has discontinued selling flavored pods and suspended all broadcast, print and digital product advertising in the wake of the legal action and governmental scrutiny.