SAN FRANCISCO (KCBS Radio) -- Juul Labs CEO Kevin Burns is stepping down. He will be replaced by K.C. Crosthwaite, an executive at Altria Group, which owns a 35 percent stake
Just a few months ago, Juul was among the highest-flying companies on the planet, dominating the rapidly-growing e-cigarette business.
Juul had just taken a $13 billion dollar investment from the big tobacco company Altria Group--leaving Juul with a valuation of $38 billion dollars.
But that's all come crashing down. Sources have told the New York Post that Juul investors have been trying to unload their shares as the company comes under increasing regulatory and legal scrutiny.
The Post reports Juul's valuation is down by more than a third since July.
Hundreds of cases of serious lung illness and several deaths have had health officials at the federal, state, and local levels warning against the use of vaping devices.
And the problems for Juul have only accelerated in the last few days. Numerous reports said the company was planning to restructure its workforce, scaling back on new hires and eliminating some jobs. Juul also announced it is suspending all broadcast, print and digital product advertising in the U.S.
“Working at JUUL Labs has been an honor and I still believe the company's mission of eliminating combustible cigarettes is vitally important,” Burns said in a press release, using the company's preferred all-capital spelling of its name.
