Liquid I.V. falsely labels some drink mixes as sugar-free, new class action lawsuit alleges

Californian Max Nicholas Ulrich and New Yorker Sabrina Zahir filed a class action lawsuit on Aug. 12, 2026, against The Liv Group Inc., alleging it falsely markets its Liquid I.V. sugar-free hydration multiplier drink mixes as containing no sugar even though they contain allulose.

Allulose counts as sugar, lawsuit claims

Each serving of Liquid I.V.’s sugar-free hydration multiplier and sugar-free energy multiplier products contains four or five grams of allulose, which appears first on the ingredient list and is therefore the predominant ingredient by weight, the lawsuit claims.

Federal rules generally allow products to make sugar-free claims if they contain less than 0.5 grams of sugar per serving. The plaintiffs contend allulose qualifies as sugar under those rules, putting the Liquid I.V. products at least eight times above that limit.

The products' nutrition facts panels list 0g of total sugar. The Food and Drug Administration currently exercises enforcement discretion that allows manufacturers to exclude allulose from the total sugars and added sugars declarations while the agency considers future rulemaking. However, the guidance doesn't change the underlying regulation, the proposed class action claims.

On July 27, the 7th U.S. Circuit Court of Appeals allowed a similar lawsuit against Chobani to proceed, concluding that FDA's allulose guidance did not change the regulatory definition of sugar.

Ulrich and Zahir say they relied on the sugar-free labeling when buying the products and would not have purchased them or would have paid less had they known allulose counted as sugar.

The legal claims

The lawsuit brings the following claims against The LIV Group:

  • California consumer laws: Ulrich alleges violations of the Consumers Legal Remedies Act, Unfair Competition Law and False Advertising Law.
  • New York consumer laws: Zahir alleges violations of General Business Law Sections 349 and 350.
  • Consumer protection and warranty claims: The plaintiffs bring additional claims on behalf of proposed multistate subclasses.
  • Unjust enrichment: The plaintiffs seek restitution for a proposed nationwide class.

Ulrich reportedly sent The Liv Group a notice under California's Consumers Legal Remedies Act on Aug. 10, 2026. He seeks injunctive relief under that law and reserves the right to seek additional relief after the statutory notice period expires.

What the Liquid I.V. lawsuit means for consumers

The plaintiffs propose a nationwide class covering U.S. consumers who bought the challenged products, along with California, New York and multistate subclasses. The complaint estimates potential class membership in the millions. The lawsuit seeks damages, restitution, attorneys' fees and an order requiring The Liv Group to stop using the disputed sugar-free claims.

No settlement or claims process exists. As of this writing, the court has not certified a class or ruled on the allegations.