Energy Drink Settlement To Pay Out $3 Million: Here's Who's Eligible

A major energy drink company is paying out $3 million after claims that the beverages contained a chemical preservative in the form of ascorbic acid.

ZOA Energy agreed to pay the amount to customers without admitting to any wrongdoing, according to records.

Why It Matters

Companies pay settlements for various reasons when there are allegations of improper product labeling or defective qualities.

While ZOA Energy drinks had a label that read "0 Preservatives," plaintiffs allege the beverages contain an ascorbic acid preservative.

What To Know

All customers who purchased a ZOA Energy drink with a label that read "0 Preservatives" between March 1, 2021, and November 21, 2025, qualify for a cash payment.

However, the company has refuted all claims of preservatives in its ingredients.

“ZOA denies these allegations and maintains that its labeling and marketing are truthful, accurate, and compliant with applicable law,” court documents said.

Newsweek reached out to ZOA Energy for comment.

To be eligible for a payment, you must have proof of purchase. Otherwise, you'll receive $1 per energy drink purchased or up to $10 per household.

Everyone with proof of purchase could earn up to $150 per household, with the sign-up period open until February 20 for the settlement. Anyone who believes they were affected can submit their claims online.

The final approval hearing for the settlement amount is scheduled for March 26.

“The proposed relief offered to Class Members will be provided only if the Court gives final approval to the Settlement and, if there are any appeals, after the appeals are resolved in favor of the Settlement,” the website said.

What People Are Saying

Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek: "For businesses, this is a great example of ensuring you can back up your marketing claims. In the case of ZOA Energy, the company claimed their energy drinks had no preservatives. A class-action lawsuit resulted in the company having to issue a financial settlement of $3 million."

What Happens Next

If you are a customer who doesn't sign up, you will lose your rights and will subsequently not receive any settlement money.

You can also opt out by February 13 to keep your right to sue ZOA Energy without receiving any money from the settlement.

"For the brand, it’s unlikely the settlement will result in too much of a setback," Beene said. "The reality is while Americans have grown more health conscious, few still micromanage nutritional labels and debate what is and isn’t in what they consume."

Newsweek

This story was originally published January 7, 2026 at 10:02 AM.