Along with fellow YouTuber KSI, the notoriously contentious Logan Paul is facing a multi-million dollar lawsuit about their equally contentious Prime Hydration company.
By the end of 2023, $1.2 billion in revenues were anticipated for KSI and Logan's Prime, according to business news outlet Bloomberg. This would seem to indicate that the streamers had a successful economic partnership.
On November 10, ABC reported that Logan Paul was defending himself against “accusations his Prime energy drink is unsafe for children to consume.” The Bloomberg item was dated November 8.
In response to the accusations, Logan said:
“Wow, that is a big assertion. But I'm eager to get started. We are a social media-first corporation, you know. I mean, data is one of the best things about social media, right?
“Analytics is available. Ninety [percent] of my viewers are older than eighteen. 93 [percent] of Prime's audience is older than 18, based on stats from Instagram.”
Although the controversy was not legally based, Prime Hydration was named in a class action complaint in April that was not specifically directed at KSI and Logan Paul's brand.
When Logan first responded to the TikTok class action lawsuit, he said as follows:
“To begin with, anybody can file a lawsuit against anyone at any moment, even if the case's allegations are untrue. And in this instance, it's not the case that a single individual carried out a haphazard investigation and offered no proof to support any of their assertions.”
As Logan further clarified, the plaintiff's claims regarding “chemicals” in the brand's bottles were what ultimately decided the case, not Prime Energy drinks.
Logan stated:
“This is not a one-shot deal. We work with the best bottle producers in the US. These businesses are used by all of your favorite beverage firms.
“If the product comes in plastic, they manufacture a bottle for it.”
In a completely unrelated incident, on August 5, YouTuber Coffeezilla posted a video in which he claimed to be sued by Logan Paul.
However, a more recent and direct case against Prime Hydration is presently being faced by KSI and Logan Paul.
Why Ksi and Logan Paul's Company is Facing a Lawsuit Nearly for $68 Million?
Refresco, a bottling company, launched a lawsuit against Prime's parent company, Congo Brands, on August 2.
A copy of the complaint against Logan Paul's company and KSI was made public by Bloomberg Law. It claimed “breach of contract, promissory estoppel, and equitable estoppel”; “estoppel” is essentially a legal concept that deals with the power to enforce previous agreements.
In the lawsuit, Refresco is requesting $67.7 million for purported expenses and changes made in order to satisfy future Prime Hydration orders.
The plaintiffs claimed on page nine of the lawsuit that in order to fulfill a business commitment made to them by Prime, they had to fork over a “large upfront capital expenditure” and dedicate a sizable amount of facility production capacity.
Refresco made several references to a “Truesdale Agreement,” which was a contract that Prime Hydration and the bottling company signed in April 2023:
In return for Refresco’s significant initial investment to set up and equip the Dedicated Line and their commitment to use this line exclusively for the Defendants’ products, giving up any chance to contract with other customers, the Defendants committed to ordering a minimum volume of beverage products from Refresco each year through December 31, 2026.
Specifically, the Defendants agreed to purchase at least 18.5 million 12-pack cases of 16.9-ounce bottles of PRIME Hydration products produced at the Truesdale Facility annually for three contract years, totaling a minimum of 55.5 million cases over the three years, each for a fixed bottling fee (the ‘Toll Fee') per case.
The defendants subsequently “repudiated the Truesdale Agreement altogether,” which, according to Refresco's lawsuit, “injured Refresco financially by denying Refresco the profits it would have earned under the Truesdale Agreement.”
Logan Paul and KSI's Prime Hydration are the targets of a recent lawsuit brought by Refresco, which is still unresolved. Paul has not seen to comment on the matter.
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