Logan Paul’s Prime Hydration is losing its energy.
The drink brand, founded by social media influencer-turned boxer in 2018, and its parent company have been hit with a $68 million lawsuit over claims they reneged on a manufacturing deal.
Bottler Refresco Beverages says Prime and Congo Brands breached their April 2023 contract by failing to buy a minimum volume of products it had previously committed to — at least 18.5 millions cases per year for three years from Refresco.
Refresco argues it had to shell out “considerable time and money” to retrofit its equipment to exclusively accommodate Prime’s unique bottle shape, according to the Aug. 2 suit filed in Delaware’s Chancery court.
Prime — the Louisville, Kentucky-based company co-founded by Paul and Olajide Olayinka Williams “JJ” Olatunji, better known as KSI, who are not named defendants — became a global sensation after hitting the market in 2022.
Prime has signed celebrity endorsement deals with Patrick Mahomes, the Kansas City Chiefs quarterback; WWE star Cody Rhodes; and New York Yankees powerhouse Aaron Judge.
Paul boasted the company made $250 million in retail sales and $110 million gross internally in the first year.
By the time Refresco was ready to have Prime test the new equipment in March 2024, Prime allegedly refused to participate. The following month Prime is said to have declined to submit initial orders to begin commercial production.
The brand is the subject of class-action suits due to its ingredients as well as alleged false advertising. Sen. Charles Schumer, D-N.Y., implored the Food and Drug Administration to investigate Prime in 2023 because of dangerously high caffeine levels. And recently the U.S. Olympic and Paralympic Committee sued Prime for trademark infringement.
Congo and KSI didn’t respond to requests for comment. Logan declined to comment via a representative.
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