Gregory Grishayev and Michael Tolmach, founders of a New Jersey vaping brand called Eonsmoke file a lawsuit against Juul Labs Inc. The suit includes multiple counts including intentional interference with prospective economic advantage. Clifton, New Jersey-based Eonsmoke LLC said in Tuesday's complaint that Juul representatives blackmailed and extorted Eonsmoke wholesalers and distributors into discontinuing sales of Eonsmoke's products. The suit also names as defendants Philip Morris USA Inc. and its parent company Altria Group Inc., which holds a minority stake in Juul.

When interviewing local vaping distributors for this story - Juul initially entered the market in 2015, the consumer and retailer reaction was lackluster. The industry was already mature and the JLI founders Adam Bowen and James Monsees found it difficult to gain traction. The two Juul founders decided they weren't going to give up, leaving the product on consignment to any smoke shop that would take them while devising a plan to market their products to a whole new generation of youth regardless if they even vaped or smoked. Vaping was not included in the 1970 ban of cigarette ads and was only loosely regulated. The two Juul founders started their edgy campaign on social media  allegedly using minors as models. 

Once their plan caught traction, by late 2018 they became the market leaders enticing smokers of all ages. Since the industry was mildly regulated, they did not have to verify age online and customers were pouring in as young as 8 years old in allegations from the multi-district proceedings JLI is currently litigating. Bowen and Monsees were focused on growth and not the ramifications it would have on the industry as a whole. In Sept 2019 the FDA stepped in and warned Juul blaming them for the surge in teenage vaping. 

With two alleged racketeers at the helm Bowen and Monsees run Juul with an egocentric core, with a main goal of owning the whole vaping market at no costs. Knowing that they gain more traction when there are less competitors on the shelf; They were not shy to use tactics from the big tobacco handbook, threatening the livelihood of their distributors and store partners if they take on additional products. Store owners afraid to lose the market leader are reluctant to retaliate.  Thus keeping out smaller competitors like Eonsmoke. More recently; Judge William Orrick decided that most of the claims brought by consumers, local governments and school districts against Juul and Altria Group Inc. under the Racketeer Influenced and Corrupt Organizations Act can move forward. Altria took a 35% stake in Juul in 2018.

Judge Edward M. Chen ruled that Plaintiff sufficiently alleged in a seperate case that Juul maintains a "culture of concealment," including via allegations that Juul instructs employees not to speak to the press; Juul instructs employees not to relay information in recorded form concerning potential illegal conduct or the public health risks associated with Juul's products; Juul instructs employees not to speak to government regulators unless they have to; Juul instructs employees to conceal information if they are forced to speak with government regulators; and Juul retaliates against employees for internally reporting instances of unlawful conduct or negative publicity.

According to Eonsmoke's complaint Juul picked their battles, it was easier to exterminate them as competition early on before they gained any more traction. According to the complaint, they devised a scheme that would ultimately cost Eonsmoke the majority of their marketshare, devastate their growth and eventually cause the New Jersey company to close its doors. Eonsmoke alleges that Juul used one of their retained law firms to mail and send a deceptive letter to every one of their customers stating that the product infringes on their patents before due process. Alleging that the smear campaign  caused confusion and deceived them into ceasing to carry products on that list including Eonsmoke. They allege that Juul prevails in using this unlawful tactic in eradicating their competition illegally. Eonsmoke founders Gregory Grishayev and Michael Tolmach armed with this mountain of evidence bring civil charges against Juul alongside its associated principals. With the mission of eventually winning monetary damages for being unlawfully eliminated out of the business they spent their lives growing. Having lost it all, the two founders Gregory Grishayev and Michael Tolmach plan to rebuild their small empire with their new project Purpyle.