Poppi Soda $8.9M Settlement: Gut Health False Advertising

Case Background

Poppi soda quickly rose from a small-scale farmers' market venture to a national beverage sensation after its founders appeared on the television show Shark Tank. By 2024, the brand dominated nearly 20% of the U.S. market share for specialty sodas, marketing itself as a "gut-healthy" alternative to traditional soft drinks. This success stemmed largely from the company's claim that its beverages contained "prebiotics" specifically agave inulin which supposedly fostered a healthy digestive system.

Cause

The legal battle began when consumers discovered that the soda’s health claims did not match scientific reality. While the company marketed the drink with slogans like "Be Gut Happy. Be Gut Healthy," the actual product contained only two grams of prebiotic fiber per can. Experts noted that a person would need to drink more than four cans a day to see any potential benefit. Furthermore, the soda relied heavily on cane sugar, which researchers argued actually harmed gut health and offset any minor benefits the fiber might provide.

Injury

The lead Plaintiff, Kristin Cobbs, and other class members argued they suffered financial harm because they paid a "premium price" for what they believed was a functional health product. They contended that they would not have purchased the soda, or would have paid significantly less for it, had they known the "prebiotic" marketing was misleading. Additionally, Plaintiffs raised concerns about the health risks of consuming the amount of agave inulin and sugar required to achieve the advertised benefits, noting potential issues like abdominal discomfort, diarrhea, and even liver inflammation.

Damages Sought

The lawsuit sought to recover the "price premium" consumers paid for the soda based on its false health claims. The Plaintiffs asked the Court for restitution, which would return the "unjust" profits the company made from its deceptive marketing. In total, the legal action aimed to represent millions of consumers across the United States, with total claims exceeding $5,000,000.

Key Arguments and Proceedings

Legal Representation

Plaintiff(s): Kristin Cobbs and a nationwide class of consumers.

Defendant(s): VNGR Beverage, LLC, doing business as Poppi.

· Counsel for Defendant(s): Michelle C. Doolin | Megan L. Donohue | Darina Alexandra Shtrakhman | Maximilian Sladek De La Cal | Vivienne Goldschlag

Key Arguments or Remarks by Counsel

Plaintiffs' counsel argued that Poppi essentially sold "sugared water" under the guise of medicine. They highlighted that the company’s massive growth surpassing even major brands like Coke in some metrics was built on a lie that the drink was "the future of soda". Counsel emphasized that Poppi failed to disclose that its prebiotic source, agave inulin, could cause significant digestive distress and that the high sugar content was fundamentally at odds with the "gut health" branding.

Claims

The lawsuit focused on several major legal violations:

Deceptive Marketing: Plaintiffs claimed the "Prebiotic Soda" and "For Healthy Gut” labels were false and misleading to the average shopper.
Consumer Protection Laws: The company allegedly violated California’s False Advertising Law and the Consumers Legal Remedies Act by misrepresenting the quality and benefits of its beverages.
Unjust Enrichment: The legal team argued it was unfair for Poppi to keep the profits it earned through these deceptive practices.

Defense

VNGR Beverage, LLC defended its products by maintaining that the sodas contained the ingredients listed and provided a healthier alternative to traditional high-sugar sodas. They sought to dismiss the claims, arguing that their labeling was accurate and that consumers received exactly what they purchased: a soda with apple cider vinegar and added fiber.

Settlement

The parties ultimately reached a resolution before the case proceeded to a full jury trial. Judge Haywood S. Gilliam Jr. presided over the final stages of the litigation. To resolve the claims and avoid further legal costs, VNGR Beverage, LLC agreed to a settlement.

The company agreed to pay $8,900,000 to settle the class action lawsuit. This fund was established to provide refunds to consumers who purchased Poppi Prebiotic Soda during the specified period and to cover the costs of legal fees and administration. As part of the agreement, the Court granted motions for the legal teams to appear remotely for the final approval hearing held on November 20, 2025.

Court documents are available upon request at jurimatic@exlitem.com