Class action alleges Celsius misled consumers with ‘healthwashed’ energy drink studies
A class action lawsuit accuses Celsius of misrepresenting health benefits using funded studies.
Why it matters: This case highlights risks for legal teams regarding consumer protection and regulatory compliance in beverage marketing, especially around health claims and product safety disclosures.
- The class action was filed on October 27, 2026, in Florida’s Southern District Court by Pomerantz LLP.
- The suit claims Celsius funded studies to market its energy drinks as healthy despite potential health risks.
- Celsius acquired Alani Nutrition LLC in April 2025 for $1.65 billion; Alani Nu products exceed Canada's caffeine limits.
- The lawsuit covers securities purchasers from February 2025 to June 2026, with ongoing investigations and past related lawsuits impacting Celsius stock.
- Texas Attorney General Ken Paxton is investigating Celsius for allegedly marketing high-caffeine drinks to minors.
On October 27, 2026, Pomerantz LLP announced a class action lawsuit against Celsius Holdings, Inc. and certain officers alleging the company ‘healthwashed’ its energy drink products. The complaint claims Celsius funded studies to misrepresent the health benefits of its drinks despite possible health risks associated with their consumption.
The lawsuit covers investors who purchased Celsius securities from February 21, 2025, to June 3, 2026. This period follows Celsius's April 2025 acquisition of Alani Nutrition LLC for $1.65 billion — a significant strategic move. Alani Nu, a Celsius-owned brand, sells energy drinks with caffeine levels above Canada’s legal limit of 180 mg per serving.
The case unfolds amid increased scrutiny. In June 2026, Texas Attorney General Ken Paxton announced an investigation into Celsius and its Alani Nu subsidiary. Paxton's office is examining potential violations of the Texas Deceptive Trade Practices Act, focusing on claims of marketing high-caffeine drinks to minors. Celsius maintains their policy not to market to those under 18.
Additionally, Celsius faces wrongful death litigation linked to Alani Nu drinks, contributing to stock volatility. Celsius stock dropped 4.18% to $34.86 on April 10, 2026, following a wrongful death lawsuit, and declined by 7.53% to $27.75 on June 4, 2026, after the Texas AG’s investigation was made public.
This lawsuit follows a 2023 $7.8 million settlement related to false advertising about preservatives. Together, these actions underscore ongoing risks in beverage marketing compliance and the legal challenges companies face when health claims are perceived as misleading.
By the numbers:
- $1.65 billion — Celsius’s acquisition cost for Alani Nutrition LLC in April 2025
- 180 milligrams — Canada's legal caffeine limit per serving, exceeded by Alani Nu drinks
- 7.53% — Celsius stock price decline after Texas AG investigation announcement in June 2026
- $7.8 million — Settlement amount in 2023 false advertising lawsuit involving Celsius
Yes, but: Celsius asserts it does not market or sample its products to anyone under the age of 18 despite these allegations and investigations.
What's next: The Texas Attorney General's investigation into Celsius is ongoing, which may lead to further regulatory actions or litigation developments.