Red Bull to pay $13 million for falsely claiming that its drinks give people wingsBy Mason White 5:37 PM October 7, 2014
|Red Bull car illustration|
By: Chan Yuan
Red Bull agreed to settle a class action lawsuit that has claimed that the company used fraudulent advertisements to convince consumers to buy its drinks.
Red Bull has agreed to pay more than $13 million to settle the class action lawsuit.
The company settled the suit to avoid the cost and the distraction of litigation, Red Bull said in a statement.
The proposed deal will include a payment for millions of people who bought at least one can of Red Bull in the past 10 years.
Consumers will have the option to receive a cash refund of $10 or two free Red Bull products with an approximate retail value of $15.
Red Bull also agrees to cover the shipping costs for refunds. The lawsuit was filed in the Federal District Court for the Southern District of New York.
The plaintiffs alleged that Red Bull misled consumers with promises of greater physical and mental performance. The company also markets its beverages as providing more of a boost than coffee.
The lead plaintiff in the lawsuit sought a court order for the company to stop falsely advertising their products. Red Bull denied any wrongdoing.