Juul Labs Faces New Criminal Probe
Federal prosecutors in California are launching a criminal probe into Juul Labs, according to The Wall Street Journal. The investigation is reportedly in the early stages.
Juul has built a leading position in the e-cigarette market. Some estimates place its market share at more than 70%. The company's sales have exploded in recent years, with Juul generating approximately $2 billion in 2018 alone.
Juul's rapid growth garnered the attention of tobacco titan Altria (NYSE: MO), which paid $12.8 billion to acquire a 35% stake in the e-cigarette leader in December. Now, however, analysts are questioning whether the value of Juul's business -- and by extension, Altria's investment -- will plunge as the company finds itself amid a potential maelstrom of regulatory action.
Source Fool.com
