Celsius Holdings, the publicly traded maker of Celsius and Alani Nu energy drinks, has been the target of a string of Celsius lawsuits and regulatory actions covering false advertising, a celebrity endorsement dispute, SEC accounting charges, a securities fraud class action, influencer marketing practices, and a Texas investigation into marketing to minors. Some are closed. Several are still moving through the courts in 2026.
The “No Preservatives” False Advertising Settlement
The earliest major consumer case, Hezi v. Celsius Holdings Inc. (S.D.N.Y., Case No. 1:21-CV-9892-VM), accused Celsius of labeling its drinks “no preservatives” while they contained citric acid, which the plaintiffs said acts as a preservative.1Top Class Actions. Celsius Beverages False Advertising $7.8M Class Action Settlement
Celsius agreed to a $7.8 million settlement fund. Buyers with proof of purchase could claim up to $250 per household, at $1 per can or $5 per 14-count package of powdered drinks; those without receipts could claim up to $20. The court granted final approval on April 5, 2023.1Top Class Actions. Celsius Beverages False Advertising $7.8M Class Action Settlement2NBC Miami. Have You Ever Purchased a Celsius Drink? You Could Be Eligible for Up to $250
Actual checks were far smaller than the caps suggested. After distribution in June 2023, class members reported payments of $0.66, $0.75, and $1.89, a sign that claim volume diluted individual shares.1Top Class Actions. Celsius Beverages False Advertising $7.8M Class Action Settlement
Flo Rida’s $82 Million Verdict and the Reduced Award on Appeal
Rapper Flo Rida (Tramar Dillard) and his company Strong Arm Productions USA sued Celsius over a 2014 endorsement deal, alleging the company failed to hand over promised stock shares and royalties. Celsius argued the sales benchmarks that would have triggered stock issuance were never hit and that the deal had ended in 2018.3NBC Miami. Jury Sides With Flo Rida, Awards $82 Million in Lawsuit Against Celsius
On January 18, 2023, a Broward County, Florida jury sided with Flo Rida on all three claims and awarded more than $82 million. The verdict covered a 2014 contract involving 250,000 shares, a 2016 contract involving 500,000 shares, and a royalties agreement dating to 2018. Damages were calculated using the stock price on the last day of trial.3NBC Miami. Jury Sides With Flo Rida, Awards $82 Million in Lawsuit Against Celsius4Today. Flo Rida Wins $82 Million Lawsuit Against Energy Drink Company Celsius
Celsius appealed the damages calculation. On December 11, 2024, Florida’s Fourth District Court of Appeal agreed that the trial court used the wrong valuation date, reversing the damages figure while affirming the liability findings. The correct valuation date, the appellate court held, was the date of the breach (April 30, 2021) or the date the stock could first have been sold (November 1, 2021). Reporting at the time suggested the award could be cut roughly in half, though no final figure had been set.5NBC Miami. Appeals Court Upholds Flo Rida’s Legal Win Against Celsius, Challenges His Award
SEC Charges and the Securities Fraud Class Action
In January 2025, the SEC settled administrative charges with Celsius Holdings (File No. 3-22429). The agency found that between September 2019 and August 2023 Celsius had improperly accounted for stock-based compensation in 2021, issued materially inaccurate quarterly financials, and failed to maintain adequate internal accounting and disclosure controls. The company agreed to a cease-and-desist order and a $3 million penalty without admitting or denying the findings. The SEC said its broader investigation was continuing.6SEC. Administrative Proceeding 34-102227-S
A separate shareholder suit is moving forward in the Southern District of Florida (Case No. 24-cv-81472). Investors allege that from May 9, 2023 through November 5, 2024, Celsius oversold inventory to distribution partner PepsiCo far beyond actual consumer demand, hiding a coming sales drop as PepsiCo worked through the excess. The stock fell from about $98.85 per share in May 2024 to $25.50 by November 2024. Defendants filed a motion to dismiss the second amended complaint on May 20, 2026, and briefing is underway.7KTMC. Celsius Holdings, Inc.8Newswire. Investors With Substantial Losses With Celsius Holdings Inc
The Influencer Marketing Class Action
In January 2025, a proposed nationwide class action was filed in the Central District of California, Dubreu v. Celsius Holdings, Inc. et al. (Case No. 5:25-cv-00180). The suit names Celsius alongside three social media influencers: Devon Barbara (known as Devon Windsor), Emily Tanner, and Erika Wheaton.9All About Advertising Law. Class Action Complaint, Dubreu v. Celsius Holdings Inc. et al.
The complaint alleges the influencers promoted Celsius through posts styled as personal endorsements, without required disclosures like “#ad” or Instagram’s “Paid Partnership” tag. The plaintiff says she would not have bought the products, or would have paid less, had she known the posts were sponsored. She brings claims under the FTC Act, California’s Unfair Competition Law, the California False Advertising Law, and the California Consumers Legal Remedies Act, and seeks an estimated $450 million.9All About Advertising Law. Class Action Complaint, Dubreu v. Celsius Holdings Inc. et al.
Defendants moved to dismiss the first amended complaint or transfer the case. The court heard argument in February 2026 and took the motion under submission. A ruling was still pending at the most recent docket update.10PACER Monitor. Mariana Dubreu v. Celsius Holdings Inc. et al
Texas Investigation Over Marketing to Minors
On June 4, 2026, Texas Attorney General Ken Paxton announced an investigation into Celsius Holdings and its subsidiary Alani Nutrition, LLC, the maker of Alani Nu. Celsius had agreed to acquire Alani Nutrition for $1.8 billion in a deal announced in February 2025, with closing expected in the second quarter of that year.11SEC. Celsius Holdings Press Release
The investigation asks whether the companies use colorful packaging, playful designs, and youth-oriented branding to sell high-caffeine products to children and teenagers, in possible violation of the Texas Deceptive Trade Practices Act. A 12-ounce can of Alani Nu contains 200 milligrams of caffeine, a level the attorney general’s office called dangerous for adolescents, and officials said the products may lack adequate warnings about age-related or cardiac risks.12Texas Attorney General. Attorney General Ken Paxton Announces Investigation Into Celsius Energy Drink Company
The investigation followed a wrongful death suit filed in April 2026 by the family of 17-year-old Larissa Rodriguez of Weslaco, Texas (Case No. C-1668-26-F, Hidalgo County District Court). A medical examiner attributed her death to cardiomyopathy caused by excessive caffeine consumption from Alani Nu energy drinks. The suit names two distributors, Glazer’s Beer and Beverage, LLC and Glazer’s Beer and Beverage of Texas, LLC, and seeks $1 million. Glazer’s denied all allegations in its response filed May 22, 2026, calling itself a non-manufacturing seller that did not alter the product.13Valley Central. Energy Drink Distributor Denies Each and Every Allegation in Weslaco Cheerleader’s Wrongful Death Lawsuit14San Antonio Express-News. Texas Paxton Celsius Investigation Alani Lawsuit
A Note on the Celsius Network Bankruptcy
Searches for “Celsius lawsuit” often surface a separate matter with no connection to the energy drink company: the Chapter 11 bankruptcy of the cryptocurrency lending platform Celsius Network LLC, filed in the Southern District of New York in July 2022 (Case No. 22-10964). That reorganization plan was confirmed in November 2023, and distributions of more than $3 billion in cryptocurrency and cash to creditors began in January 2024.15Fordham Journal of Corporate and Financial Law. Settling Scores: Celsius Chapter 11 Debt Resolution16Stretto. Celsius Network – Case Information If your question is about the beverage company, none of the Celsius Network filings apply.