Red Bull Paid $13 Million Because It Doesn't Actually Give You Wings

In 2013, a New York man named Benjamin Careathers filed a class action lawsuit against Red Bull. Careathers had been drinking Red Bull since 2002 and had a straightforward complaint: the energy drink's signature slogan, "Red Bull Gives You Wings," was false advertising.

To be clear: Careathers did not claim he expected to sprout wings. The lawsuit argued something far more mundane and far more damaging: that Red Bull's marketing implied the drink provided superior energy and performance benefits, when in reality a 250ml can of Red Bull contains about 80mg of caffeine, less than a standard 207ml cup of coffee at 150mg.

Red Bull, he argued, was just expensive caffeine water with better branding.

The Settlement

Red Bull chose to settle rather than fight. The company agreed to pay more than $13 million and explicitly denied any wrongdoing, stating it settled only to avoid the cost of prolonged U.S. litigation. It also announced it would continue using the "Gives You Wings" slogan.

The initial offer was $10 per claimant, available to anyone who had purchased a Red Bull in the United States since January 1, 2002. No receipt required.

The Catch

The settlement went viral. Everybody wanted their $10. The number of claims far exceeded the projected 1.3 million, and the per-person payout was reduced to $4.25 in cash or a four-pack of Red Bull valued at the same amount.

Red Bull's annual revenue at the time exceeded $5 billion. The $13 million settlement represented approximately 14 hours of sales. The slogan survived. The $4.25 checks did not exactly change anyone's life. But for one brief, beautiful moment, millions of Americans received a small refund for the crime of believing advertising.