Black Rifle Coffee Drowning in Lawsuits $417K Settlement, Sexual Harassment Claims, and “Made in USA” Fraud Exposed
The patriotic coffee brand that promised to support veterans is now drowning in legal battles that reveal a dramatically different story. From a $417,000 royalty dispute that won’t die to explosive sexual harassment allegations and a brand-new class action claiming their “America’s Coffee” branding is pure deception—Black Rifle Coffee Company faces over $200 million in combined legal exposure across multiple active lawsuits.
For a company that built its $370 million market cap on military values and American pride, these cases paint a troubling picture of broken contracts, hostile workplaces, and misleading marketing that has customers and investors questioning everything they thought they knew.
The Latest Bombshell: “Made in USA” Was All a Lie
On November 3, 2025, two consumers filed what could be Black Rifle’s most damaging lawsuit yet in California federal court. Justin Bakker and Noah Lundgren claim the company’s “America’s Coffee” branding and prominent American flag packaging creates a false impression that the coffee is manufactured domestically.
The reality? Black Rifle sources and processes coffee beans entirely outside the United States, according to the complaint.
The lawsuit demands class certification for all California and New York residents who purchased Black Rifle coffee within applicable statutes of limitations. With products sold through Amazon, Target, Walmart, Kroger, and Sam’s Club nationwide, the potential class could include hundreds of thousands of consumers.
What makes this case particularly explosive: When plaintiffs sent a pre-filing demand letter on September 11, 2025, Black Rifle’s in-house counsel responded with a single word—”No”—when asked about resolution discussions.
The $417K Settlement That Sparked a New Fight
Remember when settlements were supposed to end lawsuits? Not at Black Rifle Coffee.
In January 2024, the company agreed to pay Strategy and Execution Inc. (SEI) $417,000 to resolve claims over unpaid royalties for their ready-to-drink beverage line. Case closed, right? Wrong.
Just two months after the settlement agreement was signed on January 28, SEI filed an appeal on April 9 over the royalties in perpetuity decision. Five days later, Black Rifle fired back demanding SEI pay their attorney fees.
The original dispute dates to 2023 when SEI alleged Black Rifle owed hundreds of thousands in unpaid royalties that would balloon to tens of millions in future payments. The consultants claim they connected Black Rifle with beverage manufacturers under a 2020 agreement that promised $30,000 monthly plus 2 cents per ready-to-drink can sold.
The problem? Once those ready-to-drink products started generating hundreds of millions in revenue, Black Rifle allegedly tried to distance itself from the financial obligations.
Sexual Harassment Lawsuit: The Allegations CEO Evan Hafer Can’t Escape
Perhaps the most disturbing case involves Brandon Roper, a former HR manager who filed explosive sexual harassment claims against CEO Evan Hafer in 2023.
The allegations include:
- Hafer allegedly stripped completely naked in front of Roper and other employees in his office
- Days later, Hafer reportedly propositioned Roper with explicit sexual language while alone in a conference room
- Roper was pressured by executives to attend a strip club despite his Mormon faith and married status
- The company fostered a “military style management model” rife with sexual harassment and racism
- When Roper reported concerns, Hafer asked him to have the company attorney draft an employee contract allowing him to “do whatever the fuck I want to an employee without being sued”
Roper claims he was demoted from HR manager to low-level project manager after reporting the harassment, then terminated on March 29, 2017. He was offered a severance package worth approximately $32,000-$35,000 annually in exchange for not pursuing harassment claims—but that didn’t silence him forever.
The case gained additional credibility when Canadian model Nicole Arbour, who appeared in Black Rifle ads, publicly shared her own harassment allegations against company members, tweeting that people keep sending her “restraining orders and lawsuits” related to Black Rifle.
The Investor War: Stock Manipulation and Fraud Claims
Black Rifle’s public offering through a SPAC merger turned into a legal nightmare when investors started filing suit.
Tang Capital Partners Warrant Dispute
In April 2022, investment firm Tang Capital sued Black Rifle for allegedly violating a warrant agreement after the company’s SPAC acquisition. Tang claimed Black Rifle blocked them from exercising warrants to purchase shares at $11.50 per share after going public in February 2022.
A New York federal judge ruled the case could move forward, denying Black Rifle’s motion to dismiss—a significant legal victory for Tang Capital.
The Wallentine Family Battle
Things got even messier with Orange County investors Roger and Jonathan Wallentine of 1791 Management LLC. Jonathan Wallentine claimed 1791 invested at least $20 million in Black Rifle, but the relationship devolved into allegations of stock manipulation, fraud, harassment, and even death threats.
The dispute spawned multiple lawsuits including a libel suit filed by Engaged Capital’s CEO Glenn Welling over what he described as “false and defamatory internet attacks” from the Wallentines. The case included allegations of a phony law firm website and shadowy smear campaigns.
Kim Ellis Discrimination Case: Race, Age, Sex, and Retaliation
In June 2022, former executive Kim Ellis sued Black Rifle for discrimination based on sex, race, age, and disability. Ellis, who is Black and was 56 at the time, claims she was diagnosed with breast cancer in October 2021 while serving as SVP of Real Estate and Development.
Despite working through chemotherapy and only missing time for surgery, Ellis alleged that a white male in his mid-30s was hired in March 2022 to a role that would have been her promotion but for her cancer, age, sex, and race.
The lawsuit accuses Chief Retail Officer Heath Nielsen of hostile and discriminatory behavior against Ellis and “at least two high-level African American employees.” Ellis was fired 10 days after filing an HR complaint.
Environmental Violations: The California Prop 65 Case
Even Black Rifle’s coffee itself became the subject of legal action. The Environmental Research Center sued the company in January 2023 over Proposition 65 violations for failing to warn California consumers about acrylamide—a chemical compound that forms in coffee during roasting.
The case ended in a stipulated consent judgment, requiring Black Rifle to either add warnings or reduce acrylamide levels in products sold in California.
Why All These Lawsuits? The Pattern Emerges
Looking at Black Rifle’s legal troubles collectively, several troubling patterns emerge:
Broken Promises
From consultants claiming unpaid royalties to investors blocked from exercising warrants to employees facing hostile work environments—the common thread is promises made and not kept.
Rapid Growth, Weak Controls
Black Rifle generated $207.7 million in revenue in the first nine months of 2022, up nearly 29% from 2021. But that explosive growth came with massive losses—$48.3 million in operating losses and over $300 million in net losses including nonoperating expenses.
Stock Collapse
BRC’s shares closed at a 52-week high of $33.11 in April 2022 but traded in single digits for 5½ months, closing at $7.75 when initially reported. The stock is currently trading around $5-7 per share—a catastrophic decline for early investors.
Cultural Issues
The Brandon Roper sexual harassment lawsuit and Kim Ellis discrimination case suggest systemic workplace culture problems that go far beyond isolated incidents.
The Ready-to-Drink Success Story Gone Wrong
Ironically, one of Black Rifle’s biggest legal headaches stems from its most successful product line. The RTD coffee beverages launched in 2020 have been a sales phenomenon, growing dollar sales 106.3% to over $119.9 million and making Black Rifle the fourth largest brand in the segment behind only Starbucks, Monster, and Coca-Cola.
But that success came at a price. SEI consultants Bryon Evans and Pete Popovich claim they were instrumental in connecting Black Rifle with manufacturers and establishing the distribution network that made those sales possible—and they want their contractually promised cut.
Black Rifle argues SEI is attempting to rewrite their contract after the brand refused to renew their agreement, calling the lawsuit “ill-conceived” and demanding attorneys’ fees.
What This Means for Customers and Investors
For Consumers
The “Made in USA” class action puts every purchase decision into question. If you bought Black Rifle coffee believing you were supporting American manufacturing, you may be eligible to join the class action. Watch for notices if the court grants class certification.
For Investors
The combination of ongoing litigation, stock collapse, and mounting legal fees creates significant financial risk. With over $200 million in potential exposure across multiple cases, investors should carefully evaluate the company’s ability to weather these legal storms.
For Veterans
Many veterans supported Black Rifle because the brand promised to hire 10,000 veterans and give back to the military community. The workplace harassment and discrimination lawsuits raise questions about whether the company lives up to those values internally.
FAQ: Black Rifle Coffee Lawsuits
How many lawsuits is Black Rifle Coffee facing?
Black Rifle faces at least six major active legal disputes: the SEI royalty case (settled but appealed), Brandon Roper sexual harassment suit, Tang Capital warrant dispute, Wallentine investor fraud claims, Kim Ellis discrimination case, and the November 2025 “Made in USA” class action.
Did Black Rifle Coffee settle the SEI lawsuit?
Yes, Black Rifle agreed to pay $417,000 in January 2024, but SEI appealed the settlement terms two months later, and Black Rifle is now seeking attorneys’ fees from SEI.
What happened with the sexual harassment lawsuit?
The Brandon Roper case involving CEO Evan Hafer remains active with graphic allegations of workplace harassment, discrimination, and retaliation. The case has not been publicly settled or dismissed as of late 2025.
Is the “Made in USA” lawsuit a class action?
The November 2025 lawsuit seeks class certification for California and New York residents who purchased Black Rifle coffee. If granted, it could include hundreds of thousands of consumers.
Can I join the Made in USA class action?
If you purchased Black Rifle coffee in California or New York and the court grants class certification, you would likely receive notice about joining the class. Consult the case docket or contact the plaintiffs’ attorneys at Zimmerman Reed LLP.
Did Black Rifle Coffee stock crash?
Yes. After hitting $33.11 per share in April 2022, the stock collapsed to single digits and currently trades around $5-7 per share—a loss of over 80% from its peak.
Does Black Rifle Coffee really support veterans?
The company markets itself as veteran-focused and claims to hire veterans, but workplace discrimination lawsuits and internal culture issues have raised questions about those commitments.
Where is Black Rifle Coffee actually made?
According to the November 2025 lawsuit, all Black Rifle coffee beans are sourced and processed outside the United States, despite “America’s Coffee” branding and American flag packaging.
What is Black Rifle Coffee’s market cap?
The company is listed on the New York Stock Exchange (ticker: BRCC) with a market capitalization exceeding $370 million as of late 2025.
Can I sue Black Rifle Coffee for false advertising?
If you purchased Black Rifle coffee believing it was made in America, you may have grounds for a consumer protection claim. The active class action in California federal court is seeking to represent similar consumers.
What’s Next? Timeline and Potential Outcomes
SEI Royalty Case
The appeal is ongoing with no resolution date set. If SEI wins on appeal, they could reopen the entire royalty calculation, potentially costing Black Rifle tens of millions. If Black Rifle prevails, they may recover attorneys’ fees from SEI.
Made in USA Class Action
The court must first decide whether to certify the class. If certified, Black Rifle faces potentially massive liability—similar false advertising cases have resulted in settlements ranging from $10 million to over $50 million.
Sexual Harassment Case
This case could go to trial or settle confidentially. Either outcome carries reputational risk for CEO Evan Hafer and the company’s veteran-friendly brand image.
Investor Lawsuits
The Tang Capital warrant dispute and Wallentine fraud claims continue through litigation. These cases could expose the company to significant damages if juries or judges find in favor of plaintiffs.
The Bottom Line
Black Rifle Coffee built a $370 million company by wrapping itself in the American flag and promising to support veterans. But the mounting lawsuits reveal a company allegedly breaking promises to business partners, creating hostile work environments, misleading consumers about where products are made, and fighting with investors over stock manipulation.
The combination of these cases represents over $200 million in potential legal exposure—money that could have gone to hiring veterans, improving products, or building the patriotic brand the company promised.
For consumers who bought Black Rifle coffee believing they were supporting American manufacturing and veteran employment, the “Made in USA” lawsuit hits particularly hard. It’s one thing to have workplace disputes or investor battles. It’s another to allegedly deceive customers about the fundamental nature of your product.
As these cases wind through the courts in 2025 and beyond, one question looms large: Can Black Rifle Coffee survive the legal battles and reputation damage, or will the lawsuits ultimately sink the ship?
Affected by any of these issues? If you purchased Black Rifle coffee believing it was made in America, worked in a hostile environment at the company, or invested based on allegedly false information, consult with an employment attorney or consumer protection lawyer about your rights.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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