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Energy drink giants sue on claims of unfair business practices

| Apr 10, 2019 | Business & Commercial Litigation |

Energy drinks have experienced tremendous growth over the years and are popular among those in Tennessee who are interested in maintaining their good health as well as giving them the energy they need to go about their day. However, energy drink companies are businesses, and as such, cannot engage in actions that unlawfully cause their competitors to suffer financial damages. When such situations arise, business and commercial litigation may ensue.

Monster Beverage Corp. is pursuing a lawsuit against its competitor, Vital Pharmaceuticals, claiming that the company engaged in false advertising, as well as systematic anti-competitive business acts. Monster Beverage Corp. produces the energy drink “Monster,” while Vital Pharmaceuticals produces the energy drink “Bang.”

In Monster’s initial lawsuit against Vital, Monster claimed that Vital misled the public about the ingredients in Bang and how drinking Bang energy drinks would benefit them. Vital then countersued Monster, alleging the company committed trademark infringement. Monster addressed the countersuit by stating that the action was simply meant to take the public’s attention away from its initial legal claim against Vital.

In its most recent lawsuit, Monster claims that Bang’s claim that it contains “super creatine” compounds is untrue and that Vital interfered with distribution contracts Monster had with stores, causing Monster to suffer damages. Monster also claims that Vital stole trade secrets after hiring former workers of Monster Beverage Corp. Vital counters that Monster’s lawsuit contains false allegations and is the product of the fact that Monster simply cannot compete with Vital’s products in the marketplace.

It remains to be seen how this lawsuit will unfold, but the fact of the matter is that this is a very complex piece of business and commercial litigation. When two large companies accuse each other of unlawful business practices, they could try to settle their differences out-of-court through mediation or arbitration. However, if negotiations fail they will have to bring the matter before a judge. In either case, consulting with a business litigation professional may help those facing a business lawsuit understand what they are up against.