Prime Supplier Sues Logan Paul’s Energy Drink Company for $68 Million

Prime Hydration's supplier is taking legal action against the energy drink company co-founded by Logan Paul, seeking $68 million in damages.

The Lawsuit

The supplier of Prime, the energy drink brand associated with Logan Paul, has filed a lawsuit claiming breach of contract by the beverage company. The complaint alleges that Prime terminated the contract with the supplier when sales declined.

Background

Prime, a popular energy drink co-founded by YouTuber Logan Paul, severed ties with its supplier following a drop in sales. The company is currently facing multiple legal challenges, including lawsuits related to trademark infringement and inaccurate labeling of caffeine content.

Details of the Lawsuit

The supplier, Refresco, a major beverage bottling company, asserts that Prime Hydration violated a contract that required the purchase of a minimum of 18.5 million cases annually for three years. Refresco made substantial investments in a dedicated production line for Prime drinks based on this agreement.

Prime failed to meet the required purchase volume in the initial contract year, resulting in a penalty. The lawsuit does not specify the penalty amount but indicates that it could be waived if Prime fulfills the total order quantity over the three-year period.

Business Performance

Prime, launched by Logan Paul and Ksi in January 2022, quickly gained popularity and profitability. However, declining sales and various legal issues have since impacted the company's operations.

Legal Challenges

Prime is currently embroiled in multiple lawsuits, including allegations of falsely associating with the US Olympic and Paralympic Committee, mislabeling caffeine content, and the presence of harmful chemicals in its drinks.

The company faces scrutiny from regulatory authorities and legal entities, with ongoing disputes and legal actions affecting its reputation and operations.

For any inquiries or information regarding Prime Hydration and its legal matters, contact the reporter at gkay@businessinsider.com.

—————————————————————————————————————————————
By: mberg@businessinsider.com (Madeline Berg)
Title: Prime Supplier Sues Logan Paul’s Energy Drink Company for $68 Million
Sourced From: www.businessinsider.com/logan-paul-ksi-prime-supplier-sues-accusing-sales-fell-2024-8
Published Date: Tue, 06 Aug 2024 18:16:01 +0000