Logan Paul’s Prime Sports Drink Sued by Bottler for $68 Million

Prime Hydration LLC, the sports drink maker founded by influencer Logan Paul, was hit with a $68 million lawsuit for allegedly reneging on a three-year deal with a beverage bottler.

Refresco Beverages US Inc. sued Prime and an affiliate for breach of contract, saying they repudiated the agreement when surging demand for the brand began to fall off. Prime touts promotional ties to WWE Inc., Kevin Durant, Patrick Mahomes, Aaron Judge, Arsenal FC, FC Barcelona, the Los Angeles Lakers, and other major athletes and sports franchises.

As Prime realized the slowdown “likely was not just seasonal,” but stemmed from “the fading of the social media buzz that had powered” its rapid rise, the company began to waffle and offer phony excuses before trying to back out of its commitments entirely, according to the Aug. 2 filing in Delaware’s Chancery Court.

Prime didn’t immediately respond to a request for comment Monday.

Paul—who has parlayed his YouTube fame into boxing and pro wrestling careers—isn’t named as a defendant. The court complaint also doesn’t target KSI, the English influencer who partnered with him to found the beverage company.

According to the lawsuit, the preliminary deal between Prime and Refresco called for the bottler to expend significant sums customizing its production line to meet the brand’s specifications. As a result, the agreement allegedly included a minimum volume commitment and a “take or pay” provision requiring Prime to hand over a fixed fee per case in the event of an order shortfall.

While Refresco sought to ramp up for a test run, the two sides were simultaneously working to hammer out a master services agreement to replace their initial deal, according to the complaint. But Prime repeatedly dragged its feet before moving to pull out of the arrangement altogether, the suit says.

It seeks to recover the “unrecouped costs that Refresco incurred” and damages reflecting “the profits it would have earned.”

Refresco is represented by Potter Anderson & Corroon LLP and Perkins Coie LLP. Prime hasn’t yet made a court appearance.

The case is Refresco Beverages US Inc. v. Congo Brands Procurement LLC, Del. Ch., No. 2024-0819, complaint filed 8/2/24.