Bang Energy‘s parent company, Vital Pharmaceuticals, filed for Chapter 11 bankruptcy in Florida.
The business is seeking to restructure after numerous lawsuits, and the filing is a “restorative action that will help the company recover from recent problems.” Although one of the main reasons for the lawsuit was the gap between Bang and PepsiCo as a distributor, the lawsuits of the three major labels also did not help.
Bang entered into a distribution agreement with PepsiCo in March 2020, but eight months later Vital announced the termination of the partnership. This decision led to a lengthy litigation and Bang’s transition to a partner model of direct delivery to the store. According to the bankruptcy filings, Bang owes PepsiCo about $115 million under this settlement and $2.1 million under consumer programs.
In September 2022, rival Monster Energy won $293 million in false advertising and trade secrets from Bang. It was the beginning of a terrible, not good, very bad month for the company, which also included judgments from Sony Music, Warner Music and Universal Music.
Sony Music Entertainment’s infringement lawsuit against Bang Energy was also reviewed in a simplified manner last month. Both Sony Music and Universal Music sued Vital over the alleged unauthorized use of Bang music in energy drink commercials on TikTok. This includes more than 211 recordings owned by Sony Music, which are featured in at least 286 videos on social networks.
After a summary judgment, Warner Music officially joined the fray on September 19, 2022. The lawsuit included the names of the owner and CEO of Vital Pharmaceuticals and Bang Jack Ovok. Warner Music Group admits that it learned about Bang’s “egregious, intentional and repeated copyright violations” from the UMG lawsuit filed in April 2021. In July 2021, WMG sent Bang a termination notice, but the violation continued.
At the moment, it seems that after these lawsuits, Bang is using custom-made songs in his social media marketing.