Goli Nutrition, the Canadian company behind the Apple Cider Vinegar Gummies that dominated supplement aisles from 2019 onward, has been sued repeatedly since 2020. The Goli lawsuit history includes consumer class actions over allegedly false health claims, a competitor’s trademark case that Goli won at trial, a roughly $200 million dispute with its contract manufacturer, and a related investor fraud action. Combined with sagging post-pandemic sales, the litigation drove the company into a court-supervised sale in Canada in 2024.
Consumer Class Actions Over False Advertising
The suits a shopper is most likely to encounter target Goli’s marketing claims.
Ashwagandha Gummies
In May 2022, the National Advertising Division of BBB National Programs found that Goli lacked reliable scientific evidence for claims that its Ashwagandha Gummies were “clinically proven” to aid weight loss, improve sexual function, or boost physical performance. The NAD identified “several methodological flaws” in the underlying studies and recommended Goli stop making the claims.1BBB National Programs. Goli Nutrition Ashwagandha Gummies Goli said it agreed to comply while disagreeing with parts of the decision.2PR Newswire. National Advertising Division Recommends Goli Nutrition Modify or Discontinue Various Claims for Ashwagandha Gummies
Four months later, a proposed class action followed. Caputo v. Goli Nutrition Inc. et al. (1:22-cv-07723, S.D.N.Y.) alleged the Ashwagandha Gummies were falsely marketed as clinically proven to support sexual function, weight management, physical performance, and cortisol management, and it leaned on the NAD’s findings.3ClassAction.org. Class Action Claims Goli Ashwagandha Gummies Are Falsely Advertised
Apple Cider Vinegar Gummies
A Florida class action, Chatlos v. Goli Nutrition, Inc. (No. 22-CV-62362-AHS, S.D. Fla.), alleged the ACV gummies were essentially “watered-down Vitamin B supplements with an inflated price.” That case was dismissed following a settlement.4GovInfo. Duran v. Bragg Live Food Products, LLC
Dreamy Sleep Gummies
The newest consumer case is Ring et al. v. Goli Nutrition Inc. (25-cv-6247, E.D.N.Y.), filed in July 2025. It alleges that the Dreamy Sleep Gummies label misleadingly implies each gummy contains 5 milligrams of melatonin without adequately disclosing that the serving size is two gummies. The case is pending.5Truth in Advertising. Goli Nutrition Dreamy Sleep Gummies
The Better Nutritionals Manufacturing Suit
The costliest litigation came from Goli’s own contract manufacturer. Better Nutritionals, based in California, said Goli pushed it to scale from 400,000 bottles per month to between 12 and 15 million, based on sales projections the manufacturer alleged were deliberately inflated. To meet those numbers, Better Nutritionals said it opened a 420,000-square-foot facility in Norco and put $70 million into equipment.6Supply Side SJ. Contract Manufacturer Lawsuit: Goli Nutrition Drove It Into Bankruptcy
According to the manufacturer, Goli then cut its projections by more than 90 percent and shifted production to a competing manufacturer, MeriCal. Better Nutritionals filed for Chapter 11 bankruptcy on December 20, 2022, listing at least $50 million in assets and at least $100 million in liabilities.7Bloomberg Law. Goli Gummy Supplier Better Nutritionals Files for Bankruptcy One day later, it sued Goli in the Central District of California (Better Nutritionals, LLC v. Goli Nutrition, Inc. et al., 5:22-cv-02219), seeking at least $200 million in damages, with some reports putting the potential claim as high as $900 million.8Beauty Independent. Supplement Brand Goli Nutrition Sells to Avoid Bankruptcy
The suit also named Goli founders Michael Bitensky and Deepak Agarwal, investor VMG Partners, MeriCal, and law firm DLA Piper, which was accused of malpractice for allegedly representing both sides in the manufacturing agreement.9Law360. DLA Piper Sued for Malpractice After Gummy Deal Collapses Better Nutritionals voluntarily dismissed the case in April 2023.10CourtListener. Better Nutritionals, LLC v. Goli Nutrition, Inc. Its bankruptcy was converted from Chapter 11 to Chapter 7 liquidation on March 30, 2023, and the estate remains active.11Inforuptcy. Bankruptcy Case: Better Nutritionals, LLC
The Hoffman Fraud and Trade Secrets Case
A related action was brought by Sharon and Odelya Hoffman and entities they controlled, including Vitamin Friends LLC, RGL Holdings LLC, and RGL Management LLC. Sharon Hoffman was an investor connected to Better Nutritionals. In Hoffman v. Goli Nutrition, Inc. (2:23-cv-06597-CAS, C.D. Cal.), the plaintiffs alleged that Goli and VMG Partners engineered a scheme to make Better Nutritionals entirely dependent on Goli through inflated sales forecasts, aiming to force the Hoffmans to sell their interest in the manufacturer at a steep discount.12Casemine. Hoffman v. Goli Nutrition, Inc. (Second Amended Complaint Ruling)
The original complaint brought nine causes of action, including trade secret infringement, RICO violations, securities fraud, fraudulent misrepresentation, and legal malpractice against DLA Piper. In January 2024, the court dismissed nearly all claims for lack of standing, finding that most alleged injuries belonged to Better Nutritionals itself, which was in bankruptcy. Only Vitamin Friends’ trade secret claim under the Defend Trade Secrets Act and Sharon Hoffman’s securities fraud claim were allowed to proceed.13Casemine. Hoffman v. Goli Nutrition, Inc. (January 2024 Ruling) The court later dismissed both, and the plaintiffs filed a Second Amended Complaint in October 2024. As of a December 2024 hearing, motions to dismiss and for sanctions were under consideration, with the trade secret claim having survived an earlier challenge.12Casemine. Hoffman v. Goli Nutrition, Inc. (Second Amended Complaint Ruling)
The GOLO Trademark Case
In May 2020, competing supplement company GOLO, LLC sued Goli in the District of Delaware (GOLO, LLC v. Goli Nutrition, Inc., 1:20-cv-00667), alleging the “Goli” name infringed its “GOLO” trademark.14CourtListener. GOLO, LLC v. Goli Nutrition, Inc. In August 2023, a federal jury sided with Goli, finding no infringement. The case was terminated in December 2023.15Law360. GOLO, LLC v. Goli Nutrition, Inc. et al
What Happened to the Company
Goli defaulted on its credit agreements by June 2023 and became unable to meet its financial obligations.16Deloitte Insolvencies. Goli Nutrition Inc. – Amended Application for Initial Order Industry observers pointed to the fading pandemic wellness boom, high product costs, and thin direct-to-consumer margins as compounding pressures.8Beauty Independent. Supplement Brand Goli Nutrition Sells to Avoid Bankruptcy
On March 18, 2024, the Superior Court of Quebec granted an initial order under Canada’s Companies’ Creditors Arrangement Act, staying proceedings while Goli pursued a sale.17Nutraceuticals World. Goli Nutrition Avoids Bankruptcy With Acquisition Deal Under the proposed transaction, a consortium of Group KPS, Bastion Capital, and co-founder Deepak Agarwal would acquire the business as a going concern, with certain manufacturing equipment liquidated separately.18Insolvency Insider. Goli Nutrition Inc. CCAA Agarwal’s participation was attributed to his knowledge of the business and confidence in improving its financial performance.19Deloitte Insolvencies. Report of the Proposed Monitor
As of March 2024, the transaction still required final court approval in both Quebec and the United States.20Newswire. Goli Nutrition Announces Acquisition Plan for Renewed Growth Whether final approval was granted is not confirmed in the available record. Goli’s website remains fully operational, selling its full product line with U.S.-wide shipping, and the company has said its management team and retail distribution through CVS, Target, Walgreens, and Ulta Beauty were not expected to be affected by the ownership change.21Goli Nutrition. Goli Nutrition Official Website