Judge gives $7.8M Celsius settlement over false preservative advertising final approval

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Celsius preservative settlement overview: 

• Who: Celsius has reached a $7.8 million settlement with consumers.
• Why: The settlement ends claims the fitness drink company deceived consumers with its marketing.
• Where: The Celsius preservative settlement in a New York federal court.
• What are my options: Shop for Celsius and other brands with Drizly.

A federal judge has granted final approval to a $7.8 million settlement between Celsius and consumers who claimed the fitness drink company deceived consumers with its “no preservatives” marketing.

U.S. District Judge Jennifer H. Rearden gave final approval to the deal April 5 in a New York federal court. 

The lawsuit was originally filed by plaintiffs Amit Hezi, Joseph Nina and Daniel Prescod against Celsius Holdings Inc. on Nov. 23, 2021. The plaintiffs alleged that Celsius included citric acid as an ingredient in a number of its drinks, despite claiming they were free of preservatives. 

According to the plaintiffs, citric acid is considered a preservative by the Food and Drug Administration (FDA). Celcius argued the citric acid was for tart flavoring, however the plaintiffs disagreed.

“The defendant’s purported intent to use citric acid for flavoring has no bearing on the function of citric acid as a preservative,” they said.

Settlement provides compensation to consumers

As a result of the settlement, Celsius will remove the “no preservatives” claim from its marketing, the court filing said.

Each buyer of Celsius products — including beverages Celsius Live Fit, Celsius Heat, Celsius BCAA+Energy, and Celsius with Stevia and powdered drink mixes Celsius On-The-Go and Flo Fusion — will receive $1 for each can and $5 for every 14 powder packs, according to the settlement.

Attorneys for the plaintiffs will receive $2.64 million in fees and $242,294 for expenses, and the three named plaintiffs in the suit will split $20,000.

The consumers who were eligible to benefit include anyone who purchased one of the named products since January 2015. Almost a million people applied for the benefit, legal filings said. 

Nearly 60,000 are estimated to receive a payment greater than $23 and about 100,000 should get more than $14, the motion said. Celsius admitted no wrongdoing as part of the deal.

Meanwhile, a company that makes and markets sparkling water beverages failed to convince a federal judge to toss a class action lawsuit alleging it misled consumers about Celsius drink ingredients.  

Are you collecting money from this Celsius settlement? Let us know in the comments!

The plaintiffs are represented by Ryan J. Clarkson, Timothy K. Giordano, Bahar Sodaify and Zachary T. Chrzan of Clarkson Law Firm PC.

The Celsius settlement is Hezi et al. v. Celsius Holdings Inc., Case No. 1:21-cv-09892, in the U.S. District Court for the Southern District of New York.

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