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Michigan energy drink companies face business litigation

Sometimes people need a little something extra to wake up and remain alert during the work day or even a long road trip at night. This is where the various energy drinks which have recently flooded the market come into play. One of the most popular energy drinks is the 5-Hour Energy drink. The Michigan based companies that produce the drink claim that there is no energy crash which is common in other drinks. However, some are accusing them of false advertising in a series of business litigation lawsuits.

State regulating authorities are requesting that the companies, Living Essentials and Innovation Ventures, provide them with the recipe for the popular energy drink. However, the companies argue that providing this information would unfairly harm the competitiveness of the companies within the marketplace. Federal regulating authorities are also asking the companies to provide the same information.

Thirteen deaths suspected to be linked to the energy drink has prompted the Justice Department to ask for the complete recipe, however when the companies provided documentation, they only stated how much caffeine was in the product. The other information regarding the ingredients in the recipe was redacted in the copies of the documents given to federal authorities. The product contains more caffeine than any of its competitors.

It is important for the two Michigan companies to prevail in their business litigation efforts in order to maintain their market dominance. If they are not successful in their efforts it could mean serious harm to their business and also profit margins. Therefore, it is necessary to do whatever it takes since the stakes are so high. Even the costs associated with litigation may be worth it in the long run.

Source: The Tennessean, " 5-Hour Energy's ingredients are subject of court fight in TN ," Bobby Allyn, June 24, 2013

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