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Logan Paul's Prime Hydration has been hit with a string of lawsuits. Here are the details and what's next.
By Madeline Berg,Amanda Perelli,Laura Italiano,
14 hours ago
WWE/Getty Images; Joseph Okpako/WireImage; Rebecca Zisser/BI
Logan Paul's energy-drink company, Prime Hydration, is involved in a slew of lawsuits.
They variously allege breach of contract, trademark infringement, and mislabeling of caffeine content.
Here's a list of the biggest lawsuits involving Prime.
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, Refresco, 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 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 became one of the hottest drinks on the market. Thanks to two stars who knew how to market the product to their devoted fans, as well as several 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 several vendors . Estimates from NielsenIQ 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 said of 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 contained PFAS, known as "forever chemicals," that can cause health problems.
The suit claims that Prime falsely advertises the product as a "hydration beverage" containing health benefits from minerals, vitamins, and other supplements.
Castillo alleges that the way Prime is marketed as containing only healthy and natural ingredients is "misleading" and "deceptive."
In a video in April, Paul dismissed the claims.
"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. "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 called 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.
What's next: The case is tied up in administrative proceedings. Prime has not filed a motion to dismiss.
Hi-Tech Pharmaceuticals v. Prime Hydration
The issue: In a trademark suit filed in June, Hi-Tech Pharmaceuticals, a Kentucky-based company, accused Prime Hydration of "unfair competition" and "infringement."
Hi-Tech Pharmaceuticals has been making energy drinks with caffeine, as well as powders and other supplements under the name Prime Nutrition since 2015.
What's next: Prime has not responded publicly to the lawsuit.
Kennedy v. Prime Hydration
The issue: The suit was filed in 2023 by a woman who gave Prime to her 10-year-old son and who claims the product was falsely labeled and marketed to kids as healthy.
The class-action suit accuses Prime of feeding kids "inordinately high" levels of caffeine.
The lawsuit says the plaintiff seeks damages and other equitable remedies.
What's next: Prime filed a motion to dismiss, which the judge granted on several 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, an injunction requiring full disclosure of the 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 Centers for Disease Control and Prevention'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 v. Congo Brands and Prime Hydration
In the lawsuit, which was filed this month in the Chancery Court of Delaware, Refresco says Prime committed to ordering at least 18.5 million cases — or 222 million bottles — annually over three years, or a 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 — it says Prime failed to order any supply from the new production line — thus incurring a penalty payment.
What's next: Prime has not responded to the suit.
Shantay Heaven v. Prime Hydration
The issue: A class-action lawsuit filed by Shantay Heaven in Philadelphia on August 9 claims that Prime enabled the wiretapping of electronic communications of visitors to its website.
The suit accuses Prime of using Meta and Google to "eavesdrop" on users who visit its website for marketing and data analytics.
What's next: Prime hasn't responded publicly to the lawsuit.
US Olympic & Paralympic Committee v. Prime Hydration
The issue: The Olympics committee alleges 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 committee said in the lawsuit, adding that that exclusivity "is threatened when individuals and organizations use USOPC trademarks without authorization."
The committee said in the complaint that its lawyers had contacted Prime Hydration asking it to stop using the terminology but that the product continued to ship with it.
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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