The lawsuit, which was filed in Manhattan Supreme Court, said Juul has used misleading marketing tactics on social media platforms to attract minors while downplaying the danger of its products which contain nicotine.
"There can be no doubt that Juul's aggressive advertising has significantly contributed to the public health crisis that has left youth in New York and across the country addicted to its products," said New York Attorney General Letitia James at a press conference.
"As a result of all of their advertising, a significant number of young people thought that e-cigarettes were safe," she added.
California-based Juul is the largest U.S. e-cigarette brand, accounting for some 64 percent of sales in the country.
According to the latest statistics from the U.S. Centers for Disease Control and Prevention, 42 deaths and over 2,000 injuries linked with vaping have been reported.
New York is the second state this week to sue Juul.
The attorney general said the vaping-related death of a 17-year-old boy in New York City's borough of Bronx in October prompted her to file the lawsuit.
Juul suspended the sale of non-tobacco, non-menthol-based flavors last month following the ban on the sale of flavored e-cigarettes and nicotine e-liquids in several U.S. states, including New York. Minors tend to use flavored vaping products.
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