5-Hour Energy Drink Tax Suit Against Walmart Tossed By Court

A taxpayer’s lawsuit alleging that Walmart wrongly imposed sales taxes on energy drinks because they were dietary supplements was dismissed by the Third Circuit because they failed to state a claim, affirming a 2021 decision from a Pennsylvania district court.

After paying nearly $2 in taxes when purchasing 5-Hour Energy drinks, Christopher Lisowski launched a class action lawsuit on Walmart, arguing the drinks were dietary supplements exempt from sales taxes under Pennsylvania state law. His dispute was dismissed by the US District Court for the Western District of Pennsylvania in 2021, finding that Lisowski had no recourse because Pennsylvania consumer ...