Can You Claim Up to $250 from Celsius Drink Lawsuit for False Advertising? Celsius Drink Lawsuit Update

If you’ve ever purchased Celsius energy drinks, you may be entitled to compensation following a $7.8 million settlement over claims of false advertising. This lawsuit alleges that Celsius falsely labeled its products as having “no preservatives,” even though they contained citric acid, a common ingredient used as both a flavor enhancer and a preservative. While Celsius denies any wrongdoing, the case has significant implications for consumer protection and corporate accountability.

In this comprehensive guide, we’ll break down the details of the lawsuit, eligibility criteria, potential compensation, and how you can claim your settlement. We’ll also delve into the broader legal and consumer implications of such cases, with added expert insights, statistics, and references to key legal principles.

Learn about the Celsius Lawsuit

What Led to the Lawsuit?

The lawsuit, filed in November 2022 (Case No. 1:21-CV-9892-VM, U.S. District Court for the Southern District of New York), accused Celsius Holdings Inc. of falsely marketing its beverages as preservative-free despite the inclusion of citric acid.

Plaintiffs argued that the “No Preservatives” label was misleading because citric acid, regardless of its intended use, functions as a preservative. According to California attorney Ryan Clarkson, who represented the plaintiffs, consumers are willing to pay a premium for natural and healthy products, making transparent labeling crucial.

Celsius has maintained that citric acid was added solely for flavor, not preservation. However, the company chose to settle the case to avoid prolonged litigation.

Who Is Eligible for Celsius Drink Lawsuit Settlement?

If you purchased any of the following Celsius products for personal or household use (not for resale) between January 1, 2015, and November 23, 2022, you may qualify for compensation:

• Original Celsius (often labeled “Celsius Live Fit”)
• Celsius Heat
• Celsius BCAA+Energy
• Celsius with Stevia
• Celsius On-The-Go powdered drinks
• Flo Fusion powdered drinks

Eligibility Criteria For Celsius Lawsuits

To qualify, you must reside in the United States and have purchased the products for personal consumption. Purchases made for resale or distribution are not eligible.

How Much Money Can You Claim?

Eligible consumers can receive compensation based on their purchases, with or without proof of purchase:

• With Receipts:
  • $1 per can
  • $5 per package of 14 powdered drinks
  • Maximum claim: $250 per household
• Without Receipts:
  • Up to $20 per household

Pro Rata Adjustments

If the total value of approved claims exceeds the settlement fund, payments will be reduced on a pro-rata basis. Conversely, if fewer claims are filed, payments could increase up to twice the claimed amount (e.g., up to $500 with proof of purchase or $40 without proof).

How to Submit a Claim For Celsius Drink Lawsuit?

Submitting a claim is straightforward:

1. Online Submission: Visit the settlement website CelsiusClassActionSettlement.com and complete the claim form.
2. By Mail: Download, print, and mail your completed claim form to:
   • Celsius Class Administrator
     P.O. Box 4325
     Baton Rouge, LA 70821

Deadline

All claims must be submitted online or postmarked by February 13, 2023.

Your Rights and Options

1. Submit a Claim: Receive compensation based on your eligibility.
2. Opt-Out: Retain the right to file a separate lawsuit by excluding yourself from this settlement.
3. Object: File objections to any part of the settlement by mailing your concerns to the Class Administrator by February 13, 2023.

Legal Implications and Consumer Protection

This case highlights the importance of transparent labeling in consumer products. Legal principles like the Consumer Protection from Unfair Trading Regulations 2008 (UK) and the U.S. Federal Trade Commission (FTC) Act play a crucial role in holding companies accountable for misleading claims.

According to a 2020 report by Label Insight, 94% of consumers are more likely to remain loyal to a brand that offers transparency. Mislabeling not only erodes trust but also invites legal challenges like this class action suit.

Key Dates and Next Steps In Celsius Lawsuits

• Claim Deadline: February 13, 2023
• Fairness Hearing: March 31, 2023
• Final Approval: Granted on April 5, 2023

Eligible claimants began receiving payouts in mid-2023, with amounts ranging from $23.66 to the maximum $250, depending on their submission.

What Happens to Unclaimed Funds?

Any remaining funds after all claims are processed will be donated to court-approved charities. Additionally, Celsius has agreed to update its product labeling to remove the “No Preservatives” claim.

Expert Insight

Consumer rights attorney Ryan Clarkson emphasized:

“This case underscores the importance of accurate product labeling. Consumers deserve to know exactly what they’re purchasing, especially when health claims are involved.”