Prime Hydration Faces $68M Lawsuit for Alleged Contract Breach
3 min read
Image via IG@drinkprime
Logan Paul and KSI’s beverage brand, Prime Hydration, is embroiled in a $68 million lawsuit filed by Refresco, a major beverage bottling company, alleging breach of contract. This high-profile case adds to the mounting legal challenges faced by the influencer-led company.
According to the lawsuit filed on August 2, 2024, in the Delaware Court of Chancery, Prime Hydration had committed to ordering a minimum of 18.5 million cases annually over three years from Refresco. This totaled 55.5 million cases over the contract duration. Refresco claims it made significant investments to create an exclusive production line for Prime’s special bottles, which required substantial upfront expenditures and time.
Refresco, which employs 14,500 people, alleges that Prime Hydration failed to fulfill the agreed minimum order, leading to a penalty. The complaint highlights that Prime had to purchase at least 90% of the annual volume commitment each year or pay a fixed shortfall amount per case. The company failed to meet this requirement in the first year, incurring a penalty that could have been avoided if they met the total order commitment by the end of the three-year period.
The dispute escalated when Prime allegedly backed out of the agreement altogether as Refresco was preparing for a test run of the production line. Refresco is now seeking $67.7 million in damages, plus interest, making the total claim exceed $68 million. This lawsuit is part of a series of legal issues Prime Hydration is currently facing.
Prime Hydration has been in the legal spotlight multiple times over the past year. In 2023, a lawsuit was filed against the company over allegations that its grape-flavored drink contained “forever chemicals,” which are linked to cancer and other health issues. In May 2024, a class action lawsuit accused Prime of false advertising concerning the caffeine content in its energy drinks, claiming it contained over 200mg of caffeine.
The company also faced a trademark infringement lawsuit from the US Olympic and Paralympic Committee after launching a special edition bottle featuring NBA star Kevin Durant’s branding, which included references to his Olympic achievements. The Committee claimed that this misrepresented an affiliation with the Games, reserved for official sponsor Coca-Cola, seeking millions in compensation.
Logan Paul's Prime faces a new $67 million lawsuit brought by its manufacturer, Refresco Beverages.
Refresco says Prime contracted with them to create a dedicated production line and promised to purchase minimum volumes over 3 years.
But after sales declined, Prime allegedly… pic.twitter.com/mannJWKPv0— Rob Freund (@RobertFreundLaw) August 3, 2024Advertisement
Despite these challenges, Prime Hydration had initially seen significant success. Launched in January 2022 by YouTubers-turned-boxers Logan Paul and KSI, the brand quickly gained popularity through aggressive marketing and high-profile sponsorships. The demand surged, leading to shortages and resellers marking up prices significantly. In late 2022, Bloomberg reported the company was profitable and projected to surpass $1.2 billion in revenue.
However, the lawsuit reveals that by 2024, Prime’s sales were declining due to seasonal factors, reduced social media buzz, and various legal challenges. Prime’s failure to participate in a mandatory test run and subsequent termination of the contract with Refresco culminated in the current legal battle.
As the lawsuit proceeds, Prime Hydration’s representatives, including Logan Paul, have yet to comment on the case. The outcome of this legal challenge will likely have significant implications for the future of the influencer-driven beverage brand.
Shivam Kumar
Hi, I'm Shivam Kumar. I'm pursuing Journalism honors from the IP University. I love the skill of writing and looking forward to learn more of it. Also I love traveling and experiencing new things every day....
