RLL sues parent company of 2024 IndyCar sponsor

Rahal Letterman Lanigan Racing filed a lawsuit in Marion County, Ind., on Monday against companies associated with 5-hour ENERGY, former sponsor of the No. 30 RLL IndyCar Series entry driven by Pietro Fittipaldi in 2024.

RLL’s "Complaint and Demand for Jury" seeks unspecified damages from Bridge Media Networks, LLC (“BMN”); Innovation Ventures, LLC (“IV”); Living Essentials, LLC; and International IP Holdings, LLC, relating to the motorsports sponsorship agreement (MSA) executed between the team and cadre of 5-hour-related companies.

The heavily redacted filing impedes the ability to identify the finer details of the complaint, but the available text paints a picture of RLL expecting to receive some form of monetary value or income from BMN/IV through a television channel owned by BMN/IV.

“In accord with the purported contract and the parties’ commercial dealings, RLL placed Defendants’ brand, Five Hour Energy, prominently on RLL’s race car,” the complaint says. “In exchange, BMN and IV agreed to [REDACTED]. By signing the Original MSA, BMN and IV represented that [REDACTED]. In reality, they [REDACTED]. All Defendants knew [REDACTED] before the execution of the Original MSA. All Defendants concealed the fact that [REDACTED] before the execution of the Original MSA.”

Whether it was through the selling of ads on the channel or another income-generating mechanism attached to the channel that delivered funding to RLL, the complaint appears to allege payment for 5-hour ENERGY’s presence on No. 30 Honda through the channel did not happen in some capacity due to the channel being shuttered.

“On the morning of August 2, 2024, the referenced broadcast television stations and networks upon which RLL was to [REDACTED] ‘shut down,’ with executives ‘stating that nobody was watching the channels,’” the complaint says, citing statements made in public interviews by the defendants.

“These networks ‘abruptly laid off [their] entire staff of 80 workers and shut down.’ A few days later, the streaming services for these networks were removed. The shutdown was permanent.”

Unredacted passages in the complaint suggest RLL believes its MSA with BMN/IV was completed while BMN/IV were allegedly planning to cease operations with the television channel which, in theory, would have jeopardized the ability for the MSA to be honored.

“The founder of 5-hour ENERGY had acquired the broadcast networks in 2022, and he subsequently launched a sports television news network,” the complaint continues. “He knew, and all Defendants knew, at all material times, that the television stations and broadcast networks were failing. Indeed, he stated, upon shutting down the companies in or around August 2024: ‘A lack of dedicated audience was the reason for the ceasing of operations…. We believed people would want to watch a clean, non-bias[ed] news network, but we were wrong…. Without a large audience, we just couldn’t continue to lose money….[W]e just couldn’t continue.’

“The founder shut down the broadcast networks ‘in an unusual way, immediately pulling the plug rather than publicly seeking a buyer or investors.’ He did this with full knowledge and approval of all Defendants.”

An amended MSA was executed that extended the contract from the end of 2024 to the end of 2025, which is referenced more than once, and specifically in the closing request titled ‘Breach of Contract.’

Among the various requests made in the complaint, the closing passages reinforce RLL’s belief that BMN/IV acted improperly to the point of breaching the MSA and that RLL is owned something BMN/IV has not delivered.

“The Original MSA and/or the Amended MSA, together or separately, constitute a valid, binding, and enforceable contract,” the complaint states. “RLL has performed its part of the contract. BMN and IV have breached the MSA in the manner described. RLL has been damaged by BMN and IV’s breach. RLL has had to resort to this litigation to enforce the MSA. RLL has incurred reasonable attorneys’ fees and costs in doing so.”

RLL alleges “BMN and IV engaged in: evasion of the spirit of the bargain, lack of diligence and slacking off, willful rendering of imperfect performance, abuse of a power to specify terms, and interference with or failure to cooperate in the other party's performance,” and asks the court to “enter judgment in favor of Plaintiff and against Defendants. Award compensatory damages to Plaintiff. Award restitution to Plaintiff. Require Defendants to disgorge their unjust gains. Award attorneys’ fees and costs to Plaintiff. Award interest to Plaintiff. Award all other just and proper relief.”

RLL also asks the court to either enforce the MSAs and compel BMN/IV to provide whatever damages it is seeking, or to invalidate the contracts, which could be a tactic to pursue the alleged damages through a different legal strategy.

Reached by RACER, an RLL spokesperson said, "We do not comment on pending litigation."