Logan Paul’s Prime Hydration, cofounded by the controversial YouTuber and his fellow creator-turned-boxer KSI, is fighting a string of lawsuits.
The beverage company was sued this month by a bottler, which accused Prime of cutting off its contract and failing to place minimum order requirements — or order any bottles at all — once sales tanked.
“Defendants represented to Refresco that the sales volume would remain robust and continue to grow,” the complaint says. “Over the course of the year following that contract signing, however, the formerly ‘hot’ sales of PRIME sports drinks cooled markedly.”
The complaint claims Prime owes the bottler, Refresco, nearly $68 million.
It’s far from the only lawsuit Prime is facing.
Business Insider counted eight lawsuits in which Prime is the defendant. The lawsuits range from accusations of breach of contract to class-action suits that accuse Prime of mislabeling the amount of caffeine in its energy drink.
The lawsuits could spell trouble for Prime, which was flying high not too long ago.
After launching in 2022, Prime quickly became one of the hottest drinks on the market. Thanks to two stars who knew how to market the product to their devoted fans, and a slew of limited-edition flavors, supply surged well ahead of demand, leaving shelves bare and causing kids to start a playground black market for the beverage.
As recently as November, the brand still seemed to be thriving. Bloomberg reported that sales were on track to exceed $1.2 billion for 2023.
The brand does not report its sales information, but some signs seem to point to a drop in demand. In the UK, the drink has been spotted on sale at multiple vendors. Estimates from Nielsen IQ for UK sales in the first quarter of this year, and from Euromonitor for US online sales in the first half, suggest demand has fallen considerably from last year.
“I think the dispute with Refresco is ultimately linked to last year’s meteoric sales forecasts no longer aligning with the investments in production capacity that were made at the time,” Howard Telford, the head of soft drinks research at Euromonitor, told Business Insider in a statement.
“There is a big risk that this turns into a short-term viral fad unless the product itself (rather than the celebrity of the founders) can serve a real consumer need,” he added about influencer-founded brands.
A representative for Paul declined to comment.
Read about the major lawsuits facing Prime in the United States below, in alphabetical order.
Castillo v. Prime Hydration
The issue: In 2023, Elizabeth Castillo, a California resident, filed a class action lawsuit seeking $5 million, claiming that Prime contains PFAS, or “forever chemicals,” that cause health problems.
The suit claims that Prime falsely advertises the product as a “hydration beverage” containing health benefits like minerals, vitamins, and other supplements.
Castillo alleges that the way Prime is marketed as only containing healthy and natural ingredients is “misleading” and “deceptive.”
“First off, anyone can sue anyone at any time. That does not make the lawsuit true. And in this case, it is not,” Paul said in an April 2024 video response to the suit. “There’s claims that PFOS, or forever chemicals, come from plastic. So, in this case, they’re not talking about the actual drink, the liquid — Prime — they’re talking about the bottle that Prime is manufactured in. This ain’t a little rinky-dink operation. We use the top bottle manufacturers in the United States.”
What’s next: The parties are litigating Prime’s motion to dismiss.
Ceasar Bacarella v. Prime Hydration
The issue: In this case, Caesar Bacarella, the Florida-based owner of a line of sports supplements and apparel called Alpha Prime and protein brownies Prime Bites, accuses Prime of trademark infringement.
The lawsuit claims that the similar nature of the branding has confused customers, damaging Bacarella’s brand reputation.
Trademark lawsuits like these are frequent, particularly for celebrity brands, and are often settled or dismissed.
What’s next: The case is currently tied up in administrative proceedings. Prime has not yet filed a motion to dismiss.
Hi-Tech Pharmaceuticals, Inc. v. Prime Hydration
The issue: In a trademark suit filed in June 2024, Hi-Tech Pharmaceuticals, a Kentucky-based company, accused Prime Hydration of “unfair competition” and “infringement.”
Hi-Tech Pharmaceuticals has been making energy drinks that contain caffeine, as well as powders and other supplements under the name Prime Nutrition since 2015.
What’s next: Prime has not yet responded publicly to the lawsuit.
Kennedy v. Prime Hydration
The issue: The suit was filed in 2023 by a mom who gave Prime to her 10-year-old son and claims the product was falsely labeled and marketed to kids as healthy.
The class-action suit claims that Prime is feeding kids “inordinately high” levels of caffeine.
The plaintiff seeks damages and other equitable remedies, according to the lawsuit.
What’s next: Prime filed a motion to dismiss, which the judge granted on multiple technicalities. The plaintiff has until September 13 to say why the case against Paul and KSI should not be dismissed.
Preudhomme v. Prime Hydration
The issue: In this class-action caffeine lawsuit, filed in New York in May, the plaintiff accuses Prime of mislabeling and falsely advertising the amount of caffeine in each Prime Energy beverage. The complaint does not say how much caffeine is in Prime Energy drinks.
The plaintiffs are seeking monetary damages, as well as an injunction requiring full disclosure of the accurate amount of caffeine in Prime on labels and in advertising, and testing to ensure the amount listed is accurate.
The case discusses the marketing of Prime — to young and teenage boys — in light of the CDC’s recommendation that children and adolescents refrain from consuming caffeine.
What’s next: The judge denied Prime’s motion to dismiss. The case has been consolidated with lawsuits filed by two plaintiffs with related claims, and the three will proceed as a single case.
Refresco Beverages US Inc. v. Congo Brands and Prime Hydration
The issue: Refresco Beverages, a bottler for Prime, filed a lawsuit in Delaware against Prime Hydration and its parent company, Congo Brands. Refresco accuses Prime of cutting ties when sales cratered.
In the lawsuit, which was filed this month in the Chancery Court of Delaware, Refresco says Prime committed to ordering a minimum of 18.5 million cases — or 222 million bottles — annually over three years or a cumulative total of 55.5 million cases over three years. In exchange, Refresco invested in a custom production line built to exclusively serve Prime, the complaint says.
Refresco accuses Prime of failing to order the minimum required during the first year of the contract — in fact, in says Prime has failed to order any supply from the new production line — and thus has incurred a penalty payment.
What’s next: Prime has not yet responded to this suit, so it’s still up in the air how it will play out.
Shantay Heaven v. Prime Hydration
The issue: This is a class-action lawsuit, filed by Shantay Heaven in Philadelphia on August 9. The suit claims that Prime enabled the wiretapping of electronic communications of visitors to its website.
The suit claims that Prime uses Meta and Google to “eavesdrop” on users who visit its website for marketing and data analytics.
What’s next: Prime has yet to respond publicly to the lawsuit.
US Olympic & Paralympic Committee v. Prime Hydration
The Issue: The Olympics committee is suing Prime Hydration, alleging the company used various Olympic trademarks reserved for its beverage sponsor, Coca-Cola.
The complaint, which was filed in Colorado last month, says Prime Hydration used terms like “Team USA,” “Olympic,” “Olympian,” and “Going for Gold” on the packaging and in the promotion of a drink collaboration with Kevin Durant.
“Much of the value of the sponsorship agreement is derived from its exclusivity,” the USOPC wrote in the lawsuit. “The exclusivity of this agreement … is threatened when individuals and organizations use USOPC trademarks without authorization.”
The Olympics committee said in the complaint that its lawyers had contacted Prime Hydration asking it to stop using the terminology prior to filing the suit, but the product — including the infringed packaging — continued to ship.
What’s next: Prime has until September 12 to file an initial response.
Do you work for Prime Hydration or have a tip about the company? Reach out to the reporters at mberg@businessinsider.com and aperelli@businessinsider.com.
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