Proposed Class Action Against Celsius Seeks Damages Over Energy Drink Claims

Key Facts

On 26 October 2026, Annabelle Nielsen filed a proposed class action against Celsius Holdings, Inc. and Celsius, Inc. in the U.S. District Court for the Western District of Washington in Seattle. The case concerns the marketing of energy drinks and claims displayed on the front of their packaging, according to the complaint. The plaintiff alleges that the claims imply the drink alone speeds up metabolism and burns body fat. The suit seeks to represent purchasers in Washington state and presents allegations that have not been resolved by a court. The public docket does not show a ruling on the merits of the claims.

The complaint focuses on the claims “speeds up metabolism,” “burns body fat” and “live fit,” which Nielsen says create the impression that consuming the product itself produces these effects. She says that impression conflicts with the disclaimer on the back of the packaging, which the complaint describes as less prominent than the marketing messages on the front. The dispute therefore concerns not only whether a warning exists, but also where it appears and how it is presented compared with the claims consumers see first. Nielsen alleges that the front-of-package wording presents health benefits directly, while the disclaimer does not convey them with the same clarity. This remains the plaintiff’s interpretation of the packaging as set out in the complaint, not a judicial finding about its effect on consumers.

The complaint also challenges the scientific basis Celsius says it relies on to support its marketing messages. Nielsen alleges that Celsius funded the six studies the company cites to demonstrate the benefits of its products, and that the funding was not disclosed to consumers. The suit says the nature of the funding matters when assessing studies used to support health claims tied to a commercial beverage. It also discusses, according to the complaint, what the studies establish about the product and the results implied by the packaging claims. No ruling has established that the alleged nondisclosure occurred or found that the studies do not support the claims; both remain allegations by the plaintiff.

Nielsen seeks to bring the case on behalf of herself and Washington state purchasers of the products at issue, and seeks to hold the two companies responsible for marketing she describes as misleading. The complaint invokes legal claims related to consumer protection and the proposed representation of purchasers, and seeks compensation and relief for them. Calling the case a proposed class action means the court has not yet approved representation of the group on that basis. Filing the complaint does not by itself establish a violation; the allegations must proceed through litigation, and the court must decide the issues before it. Until then, the claims in the suit remain allegations attributed to the plaintiff.

The case comes as the company has reported mixed results, with annual growth alongside a more recent decline in revenue for its brand. Celsius reported total revenue of $2,515.3 million in 2025, compared with $1,355.6 million in 2024, an annual increase of 85.5%. For the CELSIUS brand specifically, the company said revenue grew 7.5% in 2025 to $1,457.7 million. But brand revenue fell about 11.7% in the second quarter of 2026 compared with the same period in 2025. The company attributed the decline in part to increased promotional spending, shipment timing and inventory rebalancing, according to its quarterly results.

CELH shares closed at $27.98 on 28 October 2026, according to data provided by EL7. Those data do not include verified figures for the session’s high or low share price. On the case docket, the latest visible activity was an order dated 28 October concerning a lawyer’s request to appear in the case outside their home state. The public docket did not list a ruling on the allegations as of that date. The next step in the case depends on subsequent court proceedings, with no date announced in the available information.