The owners and manufacturers of Elf Bar disposable vapes have settled a lawsuit brought by Altria Group vape subsidiary NJOY, agreeing to no longer sell or distribute flavored vapes within the state of California.
The agreement covers products made and distributed by Chinese companies IMiracle (HK) Ltd. and Shenzhen IMiracle Technology Co., Ltd., other related companies, and their U.S. distributors.
While sold around the world under the ELFBAR brand, IMiracle changed the brand name in the United States due to a trademark dispute in 2023. In the U.S., Elf Bar products use the brand name EBDESIGN.
IMiracle also manufactures other vape brands, including Lost Mary.
First, Altria/NJOY tried to sue everyone
In October 2023, NJOY sued 34 Chinese and American manufacturers, distributors and retailers of multiple disposable vape brands, seeking an injunction that would prevent their sale anywhere in the U.S. That lawsuit, filed in the U.S. District Court for the Central District of California, targeted companies associated with the sales of Breeze, Elf Bar, Esco Bar, Flum, Juice Box, Lava Plus, Loon, Lost Mary, Mr. Fog and Puff Bar vapes.
NJOY claimed that the sale of Elf Bar and other flavored disposable vapes irreparably damaged the market performance of its tobacco-flavored vapes. What they didn’t mention is that Elf Bar sales also cut into Altria’s combustible cigarette business.
In January 2024, the court ruled that most defendants in the suit were “improperly joined,” and dismissed all defendants from the lawsuit except those associated with IMiracle and the Elf Bar brand. The judge also rejected NJOY’s motion to serve legal notice to Hong Kong-based IMiracle by email. Within weeks, NJOY voluntarily dropped the lawsuit.
Since June, NJOY and IMiracle have engaged in settlement negotiations, according to 2FIRSTS. In October, they notified the court that a settlement had been reached, and then filed a joint motion asking for a permanent injunction preventing the sale or distribution of Elf Bar products in California.
The injunction applies to IMiracle and its associated companies, as well as authorized distributors in the U.S., including Mi-One Brands (Mi-Pod) and Element Vape (both named in the lawsuit). It also prevents the sale in other states if IMiracle believes the products will find their way into California.
The injunction will no longer apply if California modifies or reverses its flavored vape ban. Unless and until that happens, violations of the injunction would be treated as contempt of court, and remedies could be pursued in the same court by NJOY without the need to file a new lawsuit.