Costco Siphoned Rivals' 5-Hour Energy Business, Jury Told

Law360, Los Angeles (October 7, 2019, 11:09 PM EDT) -- Wholesalers told a California federal jury Monday that they’ve been steadily losing sales of 5-Hour Energy drinks as their customers turn to Costco for a cheaper product, in an antitrust case alleging the maker of the tiny energy "shots" has been offering the wholesale giant illegal favorable pricing.

In a lawsuit filed in February 2018, U.S. Wholesale Outlet & Distribution Inc. alleged that Living Essentials LLC for years has given Costco a discount on the list price it charges California wholesalers for its 5-Hour Energy drink. Trepco Imports & Distribution Ltd., Eashou Inc., Sanoor Inc., YnY International Inc., California Wholesale and L.A....

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