A settlement is underway to resolve claims that Poppi overstated the gut health benefits of its sodas. A group of consumers asked a federal judge to approve an $8.9 million settlement with VNGR Beverage LLC, maker of Poppi prebiotic sodas. The proposed deal would resolve allegations that Poppi falsely marketed its drinks as containing enough prebiotics to support digestive health.
Background of the Lawsuit
Lead plaintiffs Kristin Cobbs, Sarah Coleman, and Megan Wheeler filed separate lawsuits in 2024, claiming Poppi’s “gut healthy” claims were misleading because the sodas did not contain sufficient prebiotics to provide meaningful health benefits. The cases were consolidated in the U.S. District Court for the Northern District of California under In re: VNGR Beverage LLC Litigation, Case No. 4:24-cv-03229.
Settlement Terms and Payouts
If approved, consumers who purchased Poppi beverages between January 23, 2020, and the settlement notice date will be eligible for cash payments:
- $0.75 per single can
- $3 per four-pack
- $6 per eight-pack
- $9 per 12- or 15-pack
- Minimum payout of $5 per household for approved claims
Claimants without receipts can receive up to $16 per household; those with proof of purchase have no payout cap. Detailed claim instructions will be posted on the official settlement website once the court grants preliminary approval.
Statements from Plaintiffs and Defense
The plaintiffs describe the settlement as “exceptional,” offering “meaningful and quick relief” without the risks of prolonged litigation. Poppi denies wrongdoing, stating that consumers “did not suffer any harm or damages” and that there was no guarantee the class would prevail at trial.
Attorney Fees and Charitable Donation
Class counsel from Bursor & Fisher P.A. and Gutride Safier LLP will request up to 30% of the settlement fund (approximately $2.7 million) in attorney fees, plus $30,000 for expenses. The remaining funds will be donated to Feeding America, supporting hunger relief and nutrition education.
This settlement comes as PepsiCo recently announced a $1.65 billion acquisition of Poppi despite legal challenges.
