A person smokes a Juul Labs Inc. e-cigarette in this arranged photograph taken in the Brooklyn Borough of New York, U.S., on Thursday, Dec. 20, 2018. Altria Group's plan to take a $12.8 billion stake in Juul Labs could be destroying value, Citigroup analysts write in a note downgrading the stock to a sell from neutral.

The age-verification system for e-cigarette maker Juul did not adequately vet customers, permitting "thousands" of deliveries to "phony names and addresses in California," including 17 shipments to an individual named "Beer Can," California's attorney Xavier Becerra alleged in a lawsuit filed Monday.

California's suit alleges Juul illegally marketed to and sold e-cigarettes to minors. The lawsuit outlines alleged weaknesses in the company's age verification system that allowed minors to buy e-cigarettes from the company's online store. It's the latest in a number of legal headaches for Juul, including a whistleblower lawsuit from a former executive claiming the company knowingly sold tainted nicotine pods.

"While Juul's profits soared, their users became addicted and health compromised," California Attorney General Xavier Becerra said in a press conference announcing the lawsuit.

Juul knew minors were buying e-cigarettes from its online store and did not have appropriate processes in place to prevent the sales, California alleges, citing sales data and internal emails. For example, the state claims an individual named "Beer Can" in San Francisco purchased two Juul devices, five starter kits with devices and nicotine pods, and 41 packs of nicotine pods.

California also alleges that Juul did not verify addresses, shipping "thousands" of orders to "non-existent California addresses," such as "10 Los Angeles," "none, San Francisco" and "no signature needed, Palo Alto." California also claims customers could easily make a new account if their first attempt was blocked.