5-Hour Energy Drink Class Action Cases Consolidated
Last Updated on June 27, 2017
5-Hour Energy is currently facing nine putative class action lawsuits over the drink’s claims to provide a lasting effect without subsequent “crashes.” Innovation Ventures LLC, operating as Living Essentials, is accused of false marketing and that the energy shot’s effects wear off in a similar fashion to other products.
The various lawsuits allege that the drink’s advertised claims are misleading.
On June 5, the U.S. Judicial Panel on Multidistrict Litigation agreed to consolidate the cases in California.
The various lawsuits allege that the drink’s advertised claims are misleading, and that the product delivers a similar “crash”, once effects wear off, as competitor products. Living Essentials supported consolidation of the suits, arguing that California provided convenience and accessibility. Although plaintiffs supported Ohio, the court ruled that as California was the district with the earliest filed litigation, and also the only jurisdiction with multiple cases, the CA Federal Court was appropriate.
Plaintiffs in the cases argue that the drink’s label, which contains such phrases as “hours of energy now — no crash later” and “sugar-free” – suggests that the drink will provide five hours of sustained energy without leading to any negative crash. They also allege that Living Essential’s fine print on both drink packaging and their website admit that the “no crash” claims in false, and in fact refers to there being no sugar crash.
The MDL consolidation will be brought before Judge Philip Gutierrez of the Central District of California, who has previously overseen a 5-Hour Energy case. The Judicial Panel also announced that six related cases which weren’t included in the original motion to consolidate are potential tag-along actions for the MDL.
The new consolidated action is In Re: 5-Hour ENERGY Marketing & Sales Practices Litigation, MDL No. 2438, in the U.S. Judicial Panel on Multidistrict Litigation.
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