AUSTIN, Texas — Months after a consumer sued an Austin-based prebiotic soda brand, the company has reached an $8.9 million settlement in the class action lawsuit.

A customer alleged in a June 2024 lawsuit that Poppi misled consumers regarding its gut health benefits.

The settlement was reached on May 23 between VNGR Beverage LLC (Poppi’s former owner) and consumers misled by their gut-healthy ads.

The settlement agreement mandates that Poppi clarify its product advertising to ensure future marketing campaigns accurately reflect the beverage’s nutritional content.

Reimbursement claims are open to U.S. residents who purchased Poppi sodas for household consumption (excluding resale) from Jan. 23, 2020, to the settlement notice date.

The lawsuit contends that the soda’s 2 grams of inulin, a naturally soluble fiber, is an insignificant amount for positive gut health impact, despite its presence.

In March, Poppi was acquired by PepsiCo for $1.95 billion. Before their company was acquired, the founders appeared on “Shark Tank” in 2018 as Mother Beverage. Rohan Oza invested $400,000 in the company on Shark Tank, and in 2020, they rebranded as Poppi.

The settlement can be found below.