e-cigarette firm Juul Labs is said to be using an equity raise to the cover the costs of newly agreed legal settlements.
The company has reached a settlement with over 5,000 lawsuits and 10,000 individual plaintiffs according to reports, citing an internal company memo sent to staff by Juul chief executive K.C. Crosthwaite.
The settlement, the terms of which were not disclosed, is said to cover the "vast majority" of outstanding litigation facing the company, including two trials that were scheduled for early next year.
Juul has faced lawsuits accusing the company of marketing to children and teens, which it has denied.
The Juul brand is part-owned by NYSE-listed Altria Group, Inc. (NYSE:MO), formerly Phillip Morris.