Poppi, a soda company selling carbonated prebiotic drinks, has agreed to pay $8.9 million to settle a false advertising lawsuit, according to court documents. The class action lawsuit alleged that the company incorrectly advertised its drinks as 'gut healthy' without sufficient scientific backing.
The settlement covers consumers who purchased any flavour or package size of Poppi beverages between January 23, 2020, and July 18, 2025. Claimants can receive up to $0.75 per single can, $3 per four-pack, $6 per eight-pack, and $9 per 12 or 15 pack, though exact payouts may vary depending on the number of claims filed.
Poppi has not admitted any wrongdoing as part of the settlement. The company's gut health claims were based on the inclusion of inulin, a fibre derived from agave, which is classified as a prebiotic. However, the lawsuit argued that the drinks did not contain enough inulin to make a meaningful difference to gut health.
At the time the lawsuit was filed, Poppi called it 'baseless' and stood by its product. The settlement comes after PepsiCo acquired Poppi earlier this year for $1.95 billion. Separately, Pepsi announced it will launch its own prebiotic soda this autumn, containing three grams of prebiotic fibre, one gram more than Poppi's soda, and sweetened with cane sugar.
