Juul Sued by Former Manager Over Nondisclosure Agreements

Juul Labs Inc. was sued by a former manager challenging the e-cigarette company’s use of nondisclosure agreements.

Plaintiff Marcie Hamilton alleges the confidentiality requirements harm the company’s current and former employees, the public, and the state of California by preventing employees from cooperating with investigations and suits against Juul.

“Hamilton is in possession of information about her employment with JUUL,” the complaint alleges. But the nondisclosure agreement “prohibit[s] her from communicating this information to government regulators, government officials, the press, and others,” she alleged in a Thursday complaint at the U.S. District Court for the Northern District of California.

The company faces numerous government investigations arising from its business practices, including the use of its products by minors, according to the complaint.

Juul also faces numerous administrative and court actions arising from its business practices, including its relationship with cigarette manufacturer Altria and the health dangers of its products.

The company “relies on NDAs and other confidentiality requirements to prevent its current and former employees from providing information relevant to these investigations and actions,” the complaint alleges.

The complaint alleges that more than 3000 employees have been subject to the NDAs.

Hamilton worked for Juul from April 2, 2018, until March 2019 as its director of program management.

Causes of Action: California Labor Code, Private Attorneys General Act, Unfair Competition Law.

Relief: Injunctive relief, civil penalties, attorneys’ fees and costs.

Response: Juul didn’t immediately respond to request for comment.

Attorneys: Baker Curtis & Schwartz PC represents Hamilton.

The case is Hamilton v. Juul Labs Inc., N.D. Cal., No. 20-cv-03710, 6/4/20.