Juul Labs Inc. has agreed to pay $40 million to the state of North Carolina to resolve a lawsuit alleging that the vaping startup had targeted underage users.

The lawsuit by the attorney general of North Carolina was slated to go to trial in July, one of hundreds of similar cases brought against the e-cigarette company by state officials, school districts and young people. Those cases are pending.

North Carolina’s lawsuit alleged that Juul designed and marketed its e-cigarettes to attract teenagers and misrepresented the potency of their nicotine.

Juul has said that it didn’t target young people and is working to regain the public’s trust.

As part of the North Carolina settlement, announced by state Attorney General Josh Stein on Monday, Juul agreed not to sell sweet and fruity flavors, which the vaping company voluntarily stopped selling in the U.S. in 2019 unless authorized by the Food and Drug Administration.

This post first appeared on wsj.com

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