Amid Vaping Illness Investigation, Juul CEO Steps Down
Juul and the vaping industry have faced a series of regulatory challenges and public scrutiny over an outbreak of pulmonary illnesses associated with vaping, which has led to nine deaths across the United States.
September 25, 2019 at 03:58 PM
3 minute read
Amid criticism from regulators and increasing public scrutiny of vaping products, Juul Labs Inc. announced Wednesday that CEO Kevin Burns will step down immediately and the company will suspend all advertisements of its products.
"Working at Juul Labs has been an honor and I still believe the company's mission of eliminating combustible cigarettes is vitally important," Burns said in the press release announcing his resignation. "I am very proud of my team's efforts to lead the industry toward much needed category-wide action to tackle underage usage of these products, which are intended for adult smokers only."
K.C. Crosthwaite has taken on the role as the San Francisco-based company's CEO. Crosthwaite most recently served as the chief growth officer of Altria, which owns 35% of Juul Labs, and previously served as president and CEO of Philip Morris USA.
"I have long believed in a future where adult smokers overwhelmingly choose alternative products like JUUL. That has been this company's mission since it was founded, and it has taken great strides in that direction," Crosthwaite said in the press release.
Juul's chief legal officer, Jerry Masoudi, was not made available for comment on the transition of the company's decision to suspend advertising Wednesday. A spokesperson for the company declined to comment beyond the press release.
Juul and the vaping industry have faced a series of regulatory challenges and public scrutiny over an outbreak of pulmonary illnesses associated with vaping, which has led to nine deaths across the United States. The Centers for Disease Control and Prevention announced it would be investigating the illnesses and has advised against using vaping products during the investigation. The CDC has previously said many of those who became ill acknowledged vaping a black-market cannabis product and others have indicated they've only used nicotine vaping products.
Last month, the U.S. Food and Drug Administration sent Juul a warning letter for allegedly talking to students about the benefits of vaping.
"Against that backdrop, we must strive to work with regulators, policymakers and other stakeholders, and earn the trust of the societies in which we operate. That includes inviting an open dialogue, listening to others and being responsive to their concerns," Crosthwaite said in the press release.
In a statement sent to Corporate Counsel, Matthew Myers, the president of the Campaign for Tobacco-Free Kids, said Juul is only pulling the ads because of public pressure.
"Juul said only that it is suspending its ads, so they could well be back when Juul thinks the pressure is off," Myers said. "The FDA and other policymakers must stop Juul and other e-cigarette makers from marketing to kids or making unauthorized health claims."
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