E-cigarette giant Juul has agreed to pay $40 million to US state of North Carolina and follow strict rules on marketing its product to youth, according to a deal announced Monday by state officials.

The agreement is the first settlement that Juul has agreed to with a US state after several states filed lawsuits against the company over its business practices.

The deal mandates “drastic changes” in business practices from Juul Labs in the southern state, AFP reported, quoting a press release from the North Carolina Attorney General’s office.

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“This win will go a long way in keeping Juul products out of kids’ hands, keeping its chemical vapor out of their lungs, and keeping its nicotine from poisoning and addicting their brains,” state Attorney General Jeff Stein said.

North Carolina AG launched an investigation in 2018 and filed litigation against the company a year later in 2019. The lawsuit alleged that Juul markets its e-cigarettes in a way to attract young people while misrepresenting the danger of nicotine in its products.

Under the terms of the settlement, Juul will end most social media advertising, influencer advertising, and outdoor advertising near schools, and will not sponsor sporting events or concerts.

In addition, the company cannot sell products to anyone unless their age is first verified by an independent system.

 “The agreement is consistent with our ongoing effort to reset our company and its relationship with our stakeholders, as we continue to combat underage usage and advance the opportunity for harm reduction for adult smokers,” a statement on the company’s website said.