In a high-stakes legal battle, Vitamin Energy has filed a lawsuit against Living Essentials, the maker of 5-Hour Energy, accusing the company of illegal business practices aimed at suppressing competition in the 2-ounce energy shot market. The lawsuit, filed Friday in Michigan federal court, seeks over $1 billion in damages and claims that 5-Hour Energy’s actions have left consumers with fewer choices and stifled competition.
Vitamin Energy alleges that Living Essentials used exclusive placement agreements with major convenience store chains, including Pilot, to secure prime shelf space for its products while relegating competitors like Vitamin Energy to less visible locations. These agreements, according to Vitamin Energy, violate U.S. antitrust laws and have given 5-Hour Energy a dominant position in the market, controlling 90% or more of the industry.
The lawsuit claims that 5-Hour Energy’s product placement strategies have been specifically designed to undercut smaller competitors, forcing them into secondary positions at retail outlets. Vitamin Energy points to a key deal it negotiated with Pilot, which was allegedly undermined by 5-Hour Energy, pushing Vitamin Energy’s product to less prominent areas of the store.
Vitamin Energy further alleges that the company engaged in deceptive marketing practices, making false claims about the strength and efficacy of its product in television and social media advertisements. This is not the first time 5-Hour Energy has faced legal scrutiny for its marketing tactics. In 2017, the company was ordered to pay $4.3 million in penalties following allegations of deceptive marketing in Washington state.
At the heart of the lawsuit is the claim that 5-Hour Energy’s actions have harmed both consumers and the competitive landscape. With its dominant market share, 5-Hour Energy has effectively limited the availability of alternatives for consumers, according to Vitamin Energy. The lawsuit argues that by monopolizing key retail spaces, 5-Hour Energy has not only restricted competition but also misled consumers about the effectiveness of its products.
The case, which is being heard in the U.S. District Court for the Eastern District of Michigan, has the potential to reshape the market for energy shots, depending on the outcome. The dispute highlights the broader issues of fair competition and consumer protection within the retail sector, especially as large corporations use their market power to influence product availability and consumer choices.
For Vitamin Energy, the lawsuit is being led by Steven Susser and Jessica Fleetham of Evia Law. As of now, no legal representatives have appeared for Living Essentials in response to the lawsuit.
The case, titled Vitamin Energy Inc v. Manoj Bhargava, Living Essentials et al, is registered under case number 2:24-cv-13125-JJCG-EAS in the U.S. District Court for the Eastern District of Michigan.
Read more:
U.S. Prosecutors Charge Indian Billionaire Gautam Adani In $265 Million Corruption Scheme
U.S. Appeals Court Denies Ghislaine Maxwell’s Request To Overturn Conviction
Google Faces Potential Breakup As DOJ Accuses It Of Rigging Ad Market