Juul CEO Steps Down, Replaced By Former Tobacco Exec.

Juul Labs Inc. has a new CEO just hours after news that the popular e-cigarette brand could be under criminal investigation.

Juul CEO Kevin Burns stepped down Wednesday saying his replacement, K.C. Crosthwaite, "is well-suited to the next phase of the company’s journey." 

Crosthwaite is a former executive of tobacco company Altria. He said in a statement, Juul "must strive to work with regulators, policymakers and other stakeholders, and earn the trust of the societies in which we operate."

As part of Crosthwaite's announcement, Juul said it will completely stop advertising its product on broadcast, print and digital. Juul also said it will not attempt to lobby the Trump Administration on draft guidance for the proposed ban on the sale of vaping products with flavors other than tobacco.

Juul has said it will fully comply with the final FDA policy when it takes effect.

The CEO shake-up comes a day after sources told the Wall Street Journal the company is reportedly under federal investigation in California.