Highlights
- KSI and Logan Paul’s Prime Hydration brand was expected to reach $1.2 billion in sales in 2023.
- Logan Paul contested claims that his energy drink is unsafe for children.
- Prime Hydration faces a $67.7 million lawsuit from bottling company Refresco for alleged breach of contract.
Perpetually controversial YouTuber Logan Paul is facing a multi-million dollar lawsuit (alongside fellow YouTuber KSI), with respect to their also controversial Prime Hydration brand.
As of late 2023, business news outlet Bloomberg was reporting that KSI and Logan’s Prime was expected to haul $1.2 billion in sales by year’s end, apparently signaling a successful business collaboration between the streamers.
Bloomberg’s article was dated November 8, and on November 10, ABC reported that Logan Paul was contesting “accusations his Prime energy drink is unsafe for children to consume.”
Logan countered the allegations, asserting:
“That’s such a heavy claim. But I want to dive into it. You know, we are a social media-first company. The good thing about social media is there’s data, right?
“There’s analytics. 90 [percent] of my audience is above the age of 18. 93 [percent] of Prime’s audience is above the age of 18, according to Instagram’s analytics.”
That controversy was not legal in nature, but in April, Prime Hydration was named in a class action lawsuit, one not aimed solely at KSI and Logan Paul’s brand.
Logan initially addressed the class action suit on TikTok, responding in part:
“First off, anyone can sue anyone at any time that does not make the [claims in the] lawsuit true … And in this case, it is not … one person conducted a random study and has provided zero evidence to substantiate any of their claims.”
As Logan also explained, that lawsuit hinged not on Prime Energy drinks, but rather the plaintiff’s complaints about “chemicals” present in the brand’s bottles.
Logan said:
“This ain’t a rinky-dink operation. We use the top bottle manufacturers in the United States. All your favorite beverage brands … use these companies.
“If the product is served in plastic, they make a bottle for them.”
In an entirely separate matter, YouTuber Coffeezilla uploaded a video on August 5, claiming Logan Paul was suing him:
However, KSI and Logan Paul are currently facing a newer, more direct lawsuit targeting Prime Hydration.
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Why KSI And Logan Paul’s Brand Is Being Sued For Nearly $68M
On August 2, a lawsuit against Prime’s parent company, Congo Brands, was filed by bottling company Refresco.
Bloomberg Law published a copy of the lawsuit against KSI and Logan Paul’s company, alleging “breach of contract, promissory estoppel and equitable estoppel” — “estoppel” is, in essence, a legal concept pertaining to the ability to enforce existing promises.
Refresco is seeking $67.7 million in the suit, which centered around alleged costs incurred and modifications made to fulfill future orders for Prime Hydration.
On page nine of the suit, the plaintiffs alleged they coughed up a “large upfront capital expenditure” and devoted significant facility production capacity to accommodate business promised to them by Prime.
Refresco repeatedly referenced a “Truesdale Agreement,” describing an April 2023 agreement between Prime Hydration and the bottling company:
“In exchange for Refresco’s large upfront capital expenditure to equip and set up the Dedicated Line, and agreement to dedicate that line exclusively for Defendants’ products (and to forego all opportunities to contract with other customers for use of that line), Defendants promised to order a minimum volume of beverage products from Refresco in each contract year through December 31, 2026.
“Specifically, Defendants agreed to order and purchase, each year for three contract years, at least 18.5 million 12-pack cases of 16.9 ounce bottles of PRIME Hydration products produced in the Truesdale Facility, for an aggregate (three-year) minimum volume commitment of 55.5 million cases, each for a fixed bottling fee (the ‘Toll Fee’) per case.”
According to Refresco’s lawsuit, the defendants then “repudiated the Truesdale Agreement altogether,” which financially “injured Refresco … by denying Refresco the profits it would have earned under the Truesdale Agreement.”
Refresco’s lawsuit against Logan Paul and KSI’s Prime Hydration was recently filed, and it remains pending; Paul does not appear to have commented on the litigation.