Logan Paul’s Prime Hydration, co-founded by controversial YouTuber Logan Paul and fellow creator-turned-boxer KSI, is fighting a series of lawsuits.
The beverage company was sued this month by a bottler that accused Prime of terminating contracts, not enforcing minimum order requirements and never ordering bottles when sales plummeted.
“Defendants represented to Refresco that sales volumes would remain strong and continue to grow,” the complaint states, “but in the year following the signing of the agreement, previously ‘strong’ sales of PRIME sports drinks significantly declined.”
Prime owes bottler Refresco about $68 million, according to the lawsuit.
This is not the only lawsuit Prime is facing.
Business Insider counted eight lawsuits in which Prime is a defendant, ranging from accusations of breach of contract to a class action lawsuit alleging that Prime misrepresented the caffeine content of its energy drinks.
The lawsuit could spell trouble for Prime, which until recently was doing well.
Since its launch in 2022, Prime has quickly become one of the hottest drinks on the market. Thanks to two stars who knew how to promote the product to their devoted fans, and a slew of exclusive flavors, supply far exceeded demand, leaving shelves empty and kids starting a black market in playgrounds for the drink.
As recently as November, the brand still seemed to be going strong, with Bloomberg reporting that sales were on track to exceed $1.2 billion in 2023.
While the brand doesn’t release sales information, there are some signs that suggest demand is declining. In the UK, the drink has been spotted on sale in multiple outlets. NielsenIQ’s UK sales forecast for the first quarter of the year and Euromonitor’s US online sales forecast for the first half of the year suggest that demand is significantly lower than last year.
“We believe the dispute with Refresco ultimately has to do with last year’s booming sales forecasts no longer being aligned with the capacity investments made at that time,” Howard Telford, head of soft drinks research at Euromonitor, told Business Insider in a statement.
“If the product itself, rather than the celebrity of the founder, doesn’t address a real need among consumers, there’s a big risk this will turn into a short-term fad,” he added of influencer-founded brands.
A representative for Paul declined to comment.
Below, in alphabetical order, are the main lawsuits Prime is facing in the United States.
Castillo vs Prime Hydration
The problem: In 2023, California resident Elizabeth Castillo filed a class action lawsuit seeking $5 million, alleging that Prime contains PFAS, or “forever chemicals,” that cause health problems.
The lawsuit alleges that Prime falsely advertises its products as “hydration beverages” that contain healthful ingredients, including minerals, vitamins and other supplements.
Castillo argues that Prime’s advertising as containing only healthy, natural ingredients is “misleading” and “deceptive.”
“First of all, anyone can file a lawsuit against anyone at any time. That doesn’t make the lawsuit true. Not in this case,” Paul said in a video response to the lawsuit in April 2024. “The allegations are that PFOS, the forever chemicals, come from the plastic. So in this case, they’re not talking about the actual drink, the liquid, which is Prime, they’re talking about the bottles that Prime is made from. This is not a small, tiny operation. We use one of the top bottle manufacturers in the United States.”
What’s Next: The parties are currently litigating Prime’s motion to dismiss the lawsuit.
Cesar Bacarella vs. Prime Hydration
The issue: In this lawsuit, Cesar Vacarella, the Florida-based owner of Alpha Prime, a line of sports supplements and apparel, and Prime Bites, a line of protein brownies, is suing Prime for trademark infringement.
The lawsuit alleges that the brand similarities have confused customers and damaged Bacarella’s brand reputation.
Such trademark lawsuits occur frequently, especially in the case of celebrity brands, and are often settled or dismissed.
Next steps: The case is currently pending administrative litigation. Prime has not yet filed a motion to dismiss the case.
Hi-Tech Pharmaceuticals, Inc. v. Prime Hydration
The issue: In a trademark lawsuit filed in June 2024, Kentucky-based Hi-Tech Pharmaceuticals accused Prime Hydration of “unfair competition” and “infringement.”
Since 2015, Hi-Tech Pharmaceuticals has been making caffeinated energy drinks, powders, and other supplements under the name Prime Nutrition.
What’s next: Prime has not yet publicly responded to the lawsuit.
Kennedy vs. Prime Hydration
The issue: The lawsuit was filed in 2023 by a mother who gave Prime to her 10-year-old son, alleging that the product was falsely labeled and promoted as healthy for children.
The class action lawsuit alleges that Prime exposes children to “abnormally high” levels of caffeine.
According to the lawsuit, the plaintiffs are seeking damages and other equitable relief.
What’s next: Prime has filed a motion to dismiss the case, which the judge granted for several technical reasons. The plaintiffs have until September 13 to state why the lawsuit against Paul and KSI should not be dismissed.
Prudhomme vs Prime Hydration
The issue: In this caffeine class action lawsuit filed in New York in May, plaintiffs allege that Prime misrepresented and falsely advertised the amount of caffeine in Prime Energy drinks. The complaint does not state how much caffeine is in Prime Energy drinks.
In addition to monetary damages, the plaintiffs are seeking an injunction requiring Prime to fully disclose the exact amount of caffeine in its labels and advertising, as well as to conduct testing to ensure the stated amount is accurate.
The lawsuit discusses Prime’s marketing to young adults and teens, given the CDC’s recommendation that children and adolescents limit their caffeine intake.
What’s next: The judge denied Prime’s motion to dismiss. The case will be consolidated with a lawsuit filed by two plaintiffs with related claims, and the three lawsuits will proceed as one.
Refresco Beverages US Inc. v. Congo Brands and Prime Hydration
The issue: Prime’s bottler, Refresco Beverages, filed a lawsuit in Delaware against Prime Hydration and its parent company, Congo Brands. Refresco accuses Prime of cutting ties with it when sales plummeted.
In a lawsuit filed this month in Delaware Court of Chancery, Refresco alleges that Prime promised to order a minimum of 18.5 million cases (222 million bottles) per year for three years, or a cumulative 55.5 million cases over three years. In return, Refresco invested in a custom production line built specifically for Prime, the complaint says.
Refresco accuses Prime of not ordering the minimum quantities required in the first year of the contract. In fact, Refresco says it had to pay a penalty because Prime never ordered any supplies from the new production line.
What’s next: Prime has yet to respond to the lawsuit, so it remains to be seen what will happen next.
Shantay Haven vs Prime Hydration
The issue: This is a class action lawsuit filed by Shantay Haven in Philadelphia on Aug. 9. The suit alleges that Prime enabled eavesdropping on the electronic communications of its website visitors.
The lawsuit alleges that Prime uses Meta and Google to “sniff” users who visit its website for marketing and data analysis purposes.
What’s next: Prime has not yet publicly responded to the lawsuit.
United States Olympic and Paralympic Committee v. Prime Hydration
The issue: The Olympic Committee is suing Prime Hydration for its use of various Olympic trademarks reserved for beverage sponsor Coca-Cola.
According to a lawsuit filed last month in Colorado, Prime Hydration used words such as “Team USA,” “Olympics,” “Olympian” and “Going for the Gold Medal” on the packaging and advertising of its Kevin Durant collaboration drink.
“Much of the value of our sponsorship agreements derives from their exclusivity,” the USOPC wrote in its complaint. “When any individual or organization uses the USOPC trademarks without authorization, the exclusivity of these agreements is threatened.”
The Olympic Committee said in its complaint that its lawyers had contacted Prime Hydration before filing the lawsuit and asked it to stop using the term, but that the company continued to ship products containing the infringing packaging.
What’s next: The Prime Minister has until September 12 to submit his initial response.
Do you work at Prime Hydration or have a tip about the company? Contact our reporters at mberg@businessinsider.com and aperelli@businessinsider.com.
