"Given the growing federal, state and local regulatory complexity and uncertainty regarding e-cigarettes, we plan to discontinue the sale of electronic nicotine delivery products at all Walmart and Sam's Club U.S. locations," the memo says, according to Yahoo.
The company said it would sell through its current inventory and then exit the business.
E-cigarette maker Juul couldn't immediately be reached for comment.
Last week, President Donald Trump said the administration was considering a ban on flavored e-cigarettes amid an outbreak of the lung disease.
Trump said he was holding policy discussions on vaping, especially among underage children, amid reports that the lung disease may have killed at least six people.