Red Bull Has to Pay $13 Million Because it Does Not Actually Give You Wings

A popular energy drink will not really enable you to fly.  We all knew that, correct?

Apparently not.  Austrian company Red Bull GmbH is paying a $13 million legal settlement because the energy drink does not actually give you wings.

Red Bull agreed to settle a class action lawsuit based on the slogan the company has used for almost twenty years.

Plaintiffs in the case, represented by legal teams from Morelli Alters Ratner LLP and Kaplan Fox & Kilsheimer LLP, said that the "Red Bull gives you wings" phrase constituted advertising that was false and misleading.

Red Bull GmbH, represented by New York City-based Skadden Arps Slate Meagher & Flom LLP, denied wrongdoing in both cases, but did agree to discontinue that particular campaign.

In an article on Law360.com author David Siegel explains what this means for consumers who have purchased the drinks: "The settlement, which could potentially include millions of individuals who purchased at least one Red Bull over a period of more than 10 years, would provide class members with the option of a $10 cash reimbursement, or two free Red Bull products with an approximate retail value of $15, with Red Bull agreeing to cover the shipping costs, according to a plaintiffs' motion seeking court approval of the agreed-upon settlement terms."

Red Bull GmbH responded to BevNET with the following statement: "Red Bull settled the lawsuit to avoid the cost and distraction of litigation. However, Red Bull maintains that its marketing and labeling have always been truthful and accurate, and denies any and all wrongdoing or liability."

The plaintiffs argued that the premium price of Red Bull was indicative of superior qualities that the drink's manufacturers conveyed, through its advertising, that the energy beverage had.

Red Bull is a popular sponsor of events attended by young people.  As of this posting, it is considered to be one of the highest-selling energy drink in the world, alongside Monster Energy and Rockstar.  In a 2005 article, "Energy Drinks Build Their Buzz," Bloomberg Businessweek stated that Red Bull had a sixty percent share of the market.  That market share has been growing ever since.