The company disclosed its primary reasons for filing the bankruptcy as litigation from rival Monster Energy. And a faulty distribution agreement with PepsiCo.
The initial bankruptcy case primarily stemmed from unfavorable outcomes in legal disputes.
In January 2022, Monster Energy and its affiliate, Orange Bang, emerged victorious in an arbitration case held in a California court. The case was related to a trademark infringement claim against VPX. Following the court’s denial of VPX’s request to overturn the judgment of $214.8 million, VPX decided to appeal the decision to the 8th U.S. Circuit Court of Appeals.
In September 2022, Monster Energy achieved a favorable outcome in a separate case against VPX and Owoc. A jury awarded Monster Energy $292.9 million based on claims of false advertising, trade secret misappropriation, violation of the federal Computer Fraud and Abuse Act, and interference with contracts for retail shelf space.
Bang was accused of interfering with its rival’s dealings with retailers and falsely advertising the mental and physical benefits of Bang drinks.
