Juul Shake-Up: C.E.O. Steps Down
Juul has been dealing with a tough regulatory environment
The chief executive of Juul Labs, the dominant e-cigarette company that has been the target of public and regulatory outrage over the soaring use of teenage vaping, stepped down on Wednesday.
The executive, Kevin Burns, will be replaced by K.C. Crosthwaite, an executive from Altria, the major tobacco company that owns a 35 percent stake in Juul, which is based in San Francisco.
Juul has been confronting an increasingly tougher regulatory environment on the federal and state levels, and now a criminal inquiry by the United States attorney’s office in Northern California as well as investigations by federal agencies and some state attorneys general into its marketing practices.
Juul also said it would not fight the Trump administration’s proposal to ban most flavored e-cigarettes, which would severely hurt its domestic sales. And the company said it would end one of its campaigns, “Make the Switch,” which the Food and Drug Administration had criticized as an illegal effort to portray its e-cigarettes as safer than traditional cigarettes.
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