Juul has come under intense regulatory scrutiny after teenagers became addicted to its products. New York (CNN Business)Altria, America's preeminent cigarette company, is looking beyond tobacco for growth.

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The tobacco company has written its position down to $4.2 billion amid new restrictions on Juul’s business and scrutiny over whether the vaping company hooked a new generation of young users on nicotine. E-cigarette maker Juul Labs Inc. is facing a growing round of legal challenges. Hunter Biden got $3.5M wire transfer from Russian billionaire, report reveals, Senate report links Hunter Biden to 'prostitution or human trafficking ring', Nancy Pelosi unveils details of stimulus deal to avoid government shutdown, Shocked workers encounter 'giant rat' while cleaning sewers, Rep. Gaetz: Bloomberg may face criminal probe, Uncle Ben's renamed in effort to ditch racist imagery, Jamie Dimon is ready to pay higher taxes, just not on his wealth, Basketball’s ‘Renaissance Man’ Jalen Rose talks suiting up for NBA Finals, Gigi Hadid gives birth to first baby, Zayn Malik confirms, Mariah Carey’s ex-husband Tommy Mottola wishes her well as she teases memoir, © 2020 NYP Holdings, Inc. All Rights Reserved, partly owned by Marlboro maker Altria Group, increased regulatory scrutiny following a rise in teenage vaping, NYC’s restaurants fear 25% indoor cap means ‘Armageddon’, Behind the rise of the 77-story One Vanderbilt, Wayfair Way Day deals 2020: All of the best picks to shop right now, Bloomingdale's takes an extra 25 percent off sale items for three-day sale, Face mask fogging up your glasses? School districts across the country are suing over the promotion of Juul devices, which they say target teenagers.

In light of these headwinds, Altria took two big write downs on its investment. Thanks for contacting us. Once valued at $38 billion by Altria, Juul was valued at only $12 billion. Find out what's happening in the world as it unfolds. Representatives for Juul and and Altria declined to comment. Altria and Philip Morris had signed collaborative agreements for reduced-risk products years prior, and IQOS became the first (and to this day only) e-cig granted marketing approval by the FDA. Regulators in other countries have also taken a negative view on vaping.

“For several years, Altria and JUUL were competitors in the market for closed-system e-cigarettes. See you at the top!

“E-cigarettes are not safe for youth, young adults, and pregnant women, as well as adults who do not currently use tobacco products,” the CDC says. Photographer: David Paul Morris/Bloomberg. Before it's here, it's on the Bloomberg Terminal. “The opportunity for us and our company to eliminate combustible cigarettes, it’s historic,” said Crosthwaite, a former Altria executive.

See here for a complete list of exchanges and delays. It's clear the tobacco giant was fighting a losing battle, and would be hard-pressed to overtake Vuse let alone Juul. Chat with us in Facebook Messenger. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. Altria initially believed Juul could play a major role in offsetting declining cigarette sales.

In January, the company projected U.S. cigarette sales would decline 4% to 6% this year. The company is facing a critical regulatory deadline later this year to prove that its products provide a net benefit to public health, meaning they aid smokers in quitting more than they lure teenagers or non-users into nicotine addiction.

Still the CDC says e-cigarettes are only recommended for adult smokers who are trying to quit. A good argument can be made that, as the tobacco giant says, the investment in JUUL does not harm competition and is why it believes it has "a strong defense and will vigorously defend our investment.". The $12.8 billion investment, which occurred in December 2018, was worth $4.2 billion as of Dec. 31, 2019, Altria said Thursday. Still, regulators and state attorneys general continue investigations into Juul.

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