A lawsuit of 68 million dollars has been filed against Logan Paul’s energy drink brand for allegedly not upholding a manufacturing agreement by failing to meet the minimum product purchase requirement that was promised.
The brand, Prime Hydration, established in 2018, gained significant popularity in 2022 for their multi-colored sports drink bottles that were being sold at prices above the market rate.
Bottler Refresco Beverages has accused Prime Hydration and Congo Brands of not fulfilling their commitment to buying 18.5 million cases annually for three years from Refresco, seeking damages of $68 million as per documents filed on August 2.
In the lawsuit at Delaware’s Chancery Court, Refresco alleges that they invested a significant amount of resources to be able to produce Prime’s unique bottle shape in April 2023, only for Prime to reject them in March 2024 and subsequently not placing orders for commercial production.
Logan Paul, a YouTuber and former professional boxer, shared that the company reached $250 million in sales and $110 million in gross profits along with securing endorsements from celebrities like KSI, Patrick Mahomes, and Aaron Judge.
Both KSI and Paul, who denied commenting to The New York Post, are not listed as defendants in the lawsuit, and Congo Brands also declined to provide a statement.
Legal Battles Mount for Prime Brand
Despite the initial success and social media buzz surrounding Prime’s launch, Logan Paul and KSI now find themselves entangled in legal challenges with multiple lawsuits being brought against them.
In addition to the lawsuit from Bottler Refresco Beverages, they are facing class-action litigation for deceptive marketing practices and concerns over the ingredients used in the drink, with Senator Charles Schumer flagging the high caffeine levels as a potential risk.
In 2023, Senator Schumer urged the Food and Drug Administration to investigate the company, while the U.S. Olympic and Paralympic Committee initiated legal action for trademark violations by Prime.