Poppi, a Texas-based beverage company known for its prebiotic sodas, has agreed to an $8.9 million settlement to resolve claims that it misled consumers with its “gut healthy” marketing. The settlement applies to consumers across the United States who bought any Poppi products between January 23, 2020, and July 18, 2025, for personal or household use.
The lawsuit alleged that Poppi’s health claims were exaggerated and lacked scientific backing. While marketed as promoting gut health due to the inclusion of inulin, a plant-based prebiotic fiber, experts cited in court said the actual quantity per can, approximately 2 grams, was insufficient to offer real health benefits.
Legal documents revealed that to achieve any notable effect on gut health, a consumer would need to drink four or more cans per day, potentially consuming more sugar than recommended. Poppi did not admit wrongdoing but agreed to the settlement to avoid further legal costs and uncertainty.
Poppi is facing a class-action consumer-fraud lawsuit alleging that it misrepresents the beverage’s gut-health benefits.
The suit claims that a consumer would have to drink four cans for positive gut effects, which would then be offset by the drink’s high sugar content. pic.twitter.com/NdFlg917ck
— Pop Crave (@PopCrave) June 1, 2024
Table of Contents
What Sparked the Legal Action
The case, titled In re: VNGR Beverage, LLC Litigation, accused Poppi of leveraging health-focused branding without supporting clinical evidence. The plaintiffs argued that the company’s advertising misled average consumers into believing that drinking one can per day would yield digestive benefits.
During litigation, scientific studies were presented that concluded the small prebiotic dosage per can could not produce measurable results unless consumed in large volumes. This would significantly increase daily sugar intake, which in turn could offset any potential benefit.
Although Poppi continues to sell its drinks nationwide, it stopped using the term “gut healthy” on its product labels starting in late 2023.
Who Qualifies for a Refund
The settlement covers any U.S. resident who purchased Poppi soda between January 23, 2020, and July 18, 2025, for personal use. Purchases made for resale or commercial purposes do not qualify. Importantly, claimants are not required to prove illness or financial harm to be eligible for compensation.
Buyers with receipts or digital proof of purchase are entitled to higher reimbursement amounts, while those without receipts can still file but are subject to a household cap.
Reimbursement Details With and Without Receipts
| Product Type | Maximum Refund (With Receipt) |
|---|---|
| Single Can | $0.75 per unit |
| 4-Pack | $3.00 per pack |
| 8-Pack | $6.00 per pack |
| 12- or 15-Pack | $9.00 per pack |
For those unable to provide proof of purchase, the total refund is capped at $16 per household. All valid no-receipt claims will receive a minimum of $5.
How to Submit a Claim?
Consumers must complete the claims process by September 26, 2025, either online or by mail. Both methods require only basic information and estimated purchase volume.
- Visit www.poppisettlement.com
- Fill the Digital Claim Form
- Upload receipts if available
- Submit before the deadline
- Download the form from the website
- Send completed form to:
In re VNGR Beverage, LLC Litigation Settlement Administrator
P.O. Box 301134, Los Angeles, CA 90030-1134
Claims submitted by mail must be postmarked no later than September 26, 2025. Applicants are advised to keep a copy of their claim form and use mail tracking if possible.
Final Court Approval and Refund Timeline
The final settlement hearing is scheduled for November 20, 2025. If approved by the court, refunds will begin distribution within 90 days of the ruling. Payments will be sent via check or electronic transfer, based on the claimant’s selected method.
Important Settlement Dates
- Deadline to File a Claim: September 26, 2025
- Final Court Hearing Date: November 20, 2025
- Refund Distribution Window: 90 days post-approval
If the total number of claims exceeds the settlement fund, individual payouts will be reduced proportionally after administrative fees are deducted.
Additional Consumer Notes
- The settlement covers both in-store and online purchases, including Amazon and Poppi’s official website.
- Claims with receipts will yield higher refunds, but are not mandatory.
- Poppi is now owned by PepsiCo, which completed the acquisition in May 2025, after the lawsuit was already in progress.
Consumers who believe they are eligible should submit their claims as early as possible to ensure participation in the refund process.
