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America February 28, 2023 3 mins read

Monster Energy Demands Additional $167M from VPX in False Advertising Lawsuit

America ı By Samuel Lopez

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(USA Herald) - Monster Energy, a leading energy drink brand, is seeking an extra $167 million in damages in its lawsuit against competitor Vital Pharmaceuticals Inc. (VPX) over false advertising claims. Monster has already won a behemoth $293 million verdict, which is the largest in Lanham Act history. Monster Energy has argued that the illicit profits gained by VPX belong to them, and they are entitled to compensation for lost profits and ongoing damages.

In its recent court filing, Monster Energy has requested that VPX pay $77.4 million in unjust profits and $56 million in enhanced damages. Monster is also seeking $6 million in punitive damages and around $28 million in attorney’s fees and costs. Monster Energy is asking the court to order VPX to disgorge its profits because the jury found their false advertising claims to be "willful and deliberate."

Disgorgement is a legal recourse that compels a party who has benefited from unlawful or illicit actions to surrender any gains they made as a consequence of such conduct. The purpose of this remedy is to deter unjust enrichment and render illicit activities unprofitable.

The verdict against VPX came in September 2022 when a jury found that the company falsely advertised the "super creatine" ingredient in their energy drink Bang. The jury also ruled in Monster Energy's favor on several state law claims, including that VPX stole trade secrets and interfered with Monster's contracts. VPX waived its right to have the jury decide on potential punitive damages, allowing the trial judge to do so after briefing on the issue. VPX appeared to be more inclined to put itself at the mercy of the court rather than endure further rebuke from the jury.

Monster Energy is now seeking enhanced damages of $56 million to account for the lost profits it has suffered since April 2022 when VPX sales data was last available. Monster alleges that VPX has continued to falsely advertise Bang and has profited from those sales, and they are entitled to compensation until VPX's false advertising is enjoined.

Additionally, Monster Energy has asked for approval of around $21 million in attorney fees and costs of approximately $6.7 million. VPX has since filed for Chapter 11 protection in Florida. Monster Energy is taking the lead in advocating for the establishment of a committee to represent non-trade creditors in the bankruptcy case.

This is VPX’s second nine-figure court loss to Monster Energy in 2022, and in 2021, VPX lost trade dress claims following a trial over claims that Monster copied Bang's design with a "knockoff" version called Reign.

This case is sure to heat up in the coming months, and Samuel Lopez, a reporter for USA Herald, will be closely monitoring the case's developments. The outcome of this case could have significant implications for the energy drink industry, and it may set new precedents for how companies advertise and promote their products.

 

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