Monster Energy wins $293 mln false-advertising verdict against rival Bang

Law firms Related documents Bang's 'Super Creatine' advertising was misleading, jury found

Awards against Bang among the largest under the Lanham Act

(Reuters) - Monster Energy Co convinced a California jury on Thursday to award it $293 million in damages from rival Bang Energy in a lawsuit alleging that Bang falsely advertised the ingredients and health benefits of its drinks.

After a trial that lasted more than a month, the jury credited Monster's claims that Bang's "Super Creatine" did not contain any actual creatine and that Bang misled customers about its benefits.

Bang and its attorneys did not immediately respond to a request for comment on Friday.

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Bang has quickly become one of the best-selling energy drinks in the United States behind leading brands like Monster and Red Bull. Hueston Hennigan partner Moez Kaba, who led Monster's trial team with partner John Hueston, said Friday that the verdict shows that Bang "achieved its wild success based on widespread deception."

Kaba said that the jury awarded Monster nearly $272 million for false advertising, $18 million on claims that Bang interfered with its contracts with retailers for prominent shelf spaces, and $3 million on claims that Bang stole trade secrets from former Monster employees it recruited. The text of verdict was not immediately available from the court.

Monster previously won a $175 million award from an arbitrator in a related trademark case, which a California judge affirmed in June. That and the Thursday verdict were two of the biggest awards in the history of the federal Lanham Act, which governs both false-advertising and trademark law, with potentially more to come in punitive damages.

Monster filed the lawsuit in Riverside, California in 2018. It accused Bang of touting its product as "nothing short of a miracle drink that delivers benefits and cures that have evaded scientists for decades."

According to the lawsuit, Bang advertised its "Super Creatine" as being "20 times more effective at reaching the brain than other forms of creatine," and said its energy drink can "reverse mental retardation" and help cure disorders like Alzheimer's and Parkinson's Disease.

Monster said "Super Creatine" does not contain real creatine or provide the health benefits of creatine.

Bang denied that it falsely advertised its drinks, said "Super Creatine" is not important to a customer's decision to buy the drinks, and argued that Monster had not suffered any damages.

The case is Monster Energy Co v. Vital Pharmaceuticals Inc d/b/a Bang Energy, U.S. District Court for the Central District of California, No. 5:18-cv-01882.

For Monster: Moez Kaba and John Hueston of Hueston Hennigan

For Bang Energy: Daniel Janssen and David Muth of Quarles & Brady

Monster's blockbuster $175 mln trademark win against Bang Energy upheld

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