Juul vape pens could be pulled from US shelves

A report that the Food and Drug Administration might order Juul to pull its products from store shelves has sent shares of Altria plunging. The cigarette company owns a 35% stake in Juul.

The Wall Street Journal reported Wednesday that the FDA could order the e-cigarette maker to remove its products as early as Wednesday following a several years review of the brand regarding concerns that it may have helped fuel vaping's popularity among underage users. The FDA hasn't formally announced a move as of yet.

Altria shares tumbled 8% Wednesday. The company invested $12.8 billion for a 35% stake in Juul in 2018. The deal quickly went south as concerns mounted about the health risks of vaping, and US regulators pushed for a crackdown on e-cigarettes. Juul was also criticized for selling vape pods with flavors such as mango, creme and cucumber that became popular with teens.

In 2019, the company ended sales of its flavored products in the United States. That move came shortly before the FDA banned all vaping flavors except tobacco and menthol at the start of 2020.

Altria, which sells Marlboro, Virginia Slims and Parliament cigarettes in the United States, announced in 2020 that it took a $4.1 billion charge related to its Juul investment. The tobacco giant cited "the increased number of legal cases pending against Juul and the expectation that the number of legal cases against Juul will continue to increase."

That followed Altria's 2019 announcement of a $4.5 billion write down on its stake in Juul. At the end of last year, Altria said its Juul investment was worth less than $2 billion.

The Journal notes that Juul "could pursue an appeal through the FDA, challenge the decision in court or file a revised application for its products." Juul didn't immediately respond to CNN Business' request for comment.

Altria shares are down roughly 13% for the year.

The-CNN-Wire™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.