E-cigarette maker Juul has agreed to settle a lawsuit with a US state that accused the firm of marketing its products to young people.
Juul will pay $40m (£29m) to North Carolina over six years and will change its advertising in the region.
The vape manufacturer did not, however, admit any wrongdoing as part of the settlement.
A Juul spokesman said: “This settlement is consistent with our ongoing effort to reset our company.
“We continue to combat underage usage and advance the opportunity for harm reduction for adult smokers.”
Juul also pointed out that it had stopped distributing its non-menthol, non-tobacco, flavoured products and paused all “mass-market” product advertising over the last two years.
The settlement, announced on Monday by North Carolina Attorney General Josh Stein, is the first to be reached by the company with a state government.
Attorney General Stein told a press conference: “North Carolina is now the first state in the nation to hold Juul accountable for its instrumental role in creating a youth vaping epidemic.
“They did it to teenagers across North Carolina and this country simply to make money.”
Under the agreement, Juul will not be allowed to target its advertising at underage people or use anyone in its adverts under the age of 35 in the state.
The deal also caps the number of Juul vaping devices and pods that consumers in North Carolina can buy monthly or annually.
The North Carolina lawsuit had been scheduled to to go trial in July.
The company faces other similar cases brought against it by state officials, school districts and even young people in the US, which are still ongoing.