The FDA Could Soon Crown This E-Cig Maker King
The Food and Drug Administration (FDA) is trying to remove one of the biggest, most popular electronic cigarettes from the market, opening the way for its rival to become the unassailable leader in smoking alternatives.
Although the regulatory agency delivered what appeared to be a death blow to Juul Labs by rejecting its marketing application for the Juul device and requiring it to take all its products off store shelves, Juul won a temporary reprieve from an appeals court, which stayed the order until it can decide on the merits of the case.
Juul is partially owned by tobacco giant Altria (NYSE: MO), which acquired a 34% stake in the e-cig maker in 2018 for $12.8 billion. If Juul cannot convince a court that the FDA's decision is "arbitrary and capricious and lacks substantial evidence," as it contends in its filing with the U.S. Court of Appeals for the D.C. Circuit, it will be a knockout punch for what at one time was the dominant e-cig that may ultimately lead to bankruptcy.
Source Fool.com
