Reports of free money from Red Bull settlement lead to website crash
So many consumers sought to reap the benefits of a $13 million Red Bull settlement this week that the compensation website crashed.
BuzzFeed, NBC and Business Insider were among the publications reporting that Red Bull would pay up to $10 in cash or $15 in products to settle a suit claiming the company’s advertising misled consumers into believing the drink increased performance and concentration. The stories linked to the compensation website and said no proof of purchase is required.
Widespread reports about the free money “ruined everything,” Time reports. Because the settlement amount is capped at $13 million, consumers could receive less than $10 or $15 in products if too many apply. The crash of the compensation website suggests the interest in the settlement is so widespread that individual payouts will be diluted, Time concluded.
The settlement also resulted in a story at Snopes.com, which said it’s not true that the lawsuit was based on consumer disappointment over a failure to grow wings after drinking Red Bull. The suit claimed Red Bull didn’t deliver any more energy than a cup of coffee, according to Snopes.
The settlement is subject to approval by a Manhattan federal court. News of the settlement was first reported in August by Law360 (sub. req.), which was cited in another August article by BevNet.
Red Bull said it agreed to settle to avoid the cost and distraction of litigation, and it maintains its marketing was always truthful and accurate.
