Juul CEO Resigns In Midst Of Government Crackdown

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Posted: Sep 25, 2019 11:55 AM
Juul CEO Resigns In Midst Of Government Crackdown

Source: AP Photo/Frank Augstein

The chief executive officer of Juul Labs, Inc., Kevin Burns, announced his resignation on Wednesday in the midst of federal and state crackdowns on flavored e-cigarettes sold by Juul and similar businesses as health concerns grow. 

The Wall Street Journal reports that "Mr. Burns will be replaced by K.C. Crosthwaite, Altria’s chief strategy officer. The company cited the need to focus on regulatory matters for its decision to tap Mr. Crosthwaite, who has experience working closely with regulators." 

Accordingly, "Juul said it wouldn’t lobby against the Trump administration’s proposed ban on most flavored e-cigarettes and will suspend all broadcast, print and digital advertising for its products in the U.S." 

On Tuesday, Massachusetts Governor Charlie Baker called for a four-month ban on all e-cigarette and vaping products sold in the commonwealth due to a nationwide outbreak of a lung illness and even deaths supposedly caused by vapes and e-cigarettes.

Critics point out that it is not the vapes nor the e-cigarettes which actually cause these tragedies, rather it is individuals using certain types of THC in the vapes instead of nicotine. 

At the national level, "the Trump administration earlier this month said it planned to ban all e-cigarettes except those formulated to taste like tobacco. The banned flavors, including mint and menthol, represent more than 80% of Juul’s sales," the WSJ notes.

The company's sales dipped in August by more than $14 million after hundreds of Juul-related medical cases propped up around the United States.