Red Bull’s false ad settlement amounts to $13 million in a class action suit filed in a New York federal court.
According to Examiner, the lawsuit claims the energy drink does not in fact give people wings. It also centers around the company’s excessive and inaccurate claims of effectiveness in terms of actually giving people energy.
If the suit is approved, the Red Bull false ad settlement will give Class members the option of a $10 cash reimbursement or $15 in products.
Red Bull has agreed to pay the false ad settlement after stating that its energy drinks had more benefits than coffee. The company will also have seven days from the approval date to put $6.5 million toward the case, according to the class action lawsuit motion filed by Plaintiffs Benjamin Careathers, David Wolf, and Miguel Almaraz.
The $13 million Red Bull false ad settlement will cover the cash reimbursement, the products sent out to Class members, the expenses of the Class action settlement administrator, for advertising the settlement to potential class members via various media resources, and attorney fees.
The Class will include anyone who bought “at least one Red Bull beverage dating back to Jan. 1, 2002.”
The plaintiffs are also asking that the alleged false advertising campaign by Red Bull be discontinued.
“Beyond monetary relief, although Red Bull denies wrongdoing and believes that its marketing materials and advertising have always been truthful and accurate, it has voluntarily withdrawn or revised the marketing claims challenged by plaintiffs, and will confirm that all future claims about the functional benefits from consuming its products will be medically and/or scientifically supported,” the plaintiffs said in their motion.
This Red Bull false ad settlement was made through extensive meetings between attorneys and a mediator.
Careathers filed his Red Bull class action lawsuit in the U.S. District Court for the Southern District of New York on Jan. 16, 2013. Wolf and Almaraz filed their class action lawsuit against the beverage company on Feb. 27, 2013 in the U.S. District Court for the Central District of California. The California lawsuit was later “transferred and consolidated with the New York Action.”
The plaintiffs allege that “Red Bull falsely marketed its energy drinks as providing certain functional benefits and thereby induced consumers into purchasing and/or paying a ‘premium’ for those drinks over alternate sources of caffeine.”
In spite of the class action settlement agreement, “Red Bull denies all wrongdoing or liability, and is prepared to vigorously defend its marketing claims if the litigation proceeds.”
Careathers, Wolf and Almaraz all claim to be “longtime consumer[s] of Red Bull beverages.”
The Red Bull false ad settlement does come with scrutiny and other claims. The plaintiffs explain, “The thrust of the allegations herein is that the functional benefits of consuming Red Bull are not superior to the benefits from ingesting an equivalent amount of alternate sources of caffeine, and that consumers have been misled.”