Medical analyzes the high consumption of menthol cigarettes in young Latinos 3:44
New York (CNN Business) --
A report that the Food and Drug Administration (FDA) could order Juul to remove its products from store shelves has sent shares of Altria plummeting. .
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 recall its products on Wednesday following a years-long review of the brand over concerns that it may have helped fuel the popularity of vaping among minor users.
The FDA has yet to formally announce a move, and CNN has not been able to verify the Journal's report.
An FDA spokesperson told CNN that the agency was unable to provide any information at this time.
Juul Labs did not immediately respond to CNN's request for comment.
Altria shares fell 8% this Wednesday while the drop this year has been 13%.
The company invested $12.8 billion for a 35% stake in Juul in 2018. The deal quickly fell through as concerns about vaping's health risks mounted, and U.S. regulators pushed to crack down on vaping. electronic cigarettes.
Juul was also criticized for selling vape pods in flavors like mango, cream and cucumber that became popular with teens.
The United States plans to ban the sale of flavored electronic cigarettes that are not tobacco flavored
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 in early 2020.
advertising
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 investment in Juul.
The tobacco giant cited "the increasing 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 announcement in 2019 of a $4.5 billion writedown on its Juul stake.
Late last year, Altria said its investment in Juul was worth less than $2 billion.
The Wall Street Journal notes that Juul "could file an appeal through the FDA, challenge the decision in court, or file a revised application for its products."
Using E-Cigarettes Doesn't Work to Quit Smoking: Study
This move comes after the Biden administration signaled Tuesday that it will develop a proposed rule to set a maximum level of nicotine in cigarettes and other tobacco products that will essentially reduce their amount in products available in the United States.
It's a step no other administration has taken before and, according to public health experts, would be transformative if enacted.
Although e-cigarette products have been allowed to remain on the market for years, in 2020, the FDA required companies to submit applications to keep the products on the market.
-- CNN Health's Carma Hassan contributed to this report
Electronic CigarettesJuul
