Manoj Bhargava

Manoj Bhargava (born 1953) is an Indian American businessman and philanthropist.^[2] He is the founder of Innovations Ventures LLC that produces the 5-hour Energy drink.^[3][4]

Manoj Bhargava
Born	1953 (age 71–72)[1] Lucknow, India
Citizenship	United States
Education	Princeton University (dropped out)
Occupation(s)	Entrepreneur, philanthropist
Known for	5-hour Energy
Spouse	Sadhna Bhargav
Children	1

Bhargava spent a large part of his early years in a monastic community and later developed a multi-billion-dollar business with his energy shot product.^[5] Beginning in the 2010s, the U.S. Food and Drug Administration (FDA) investigated numerous fatalities potentially linked to the product. Living Essentials also faced lawsuits from dozens of state attorneys general for deceptive advertising, resulting in a $4.3 million penalty in a Washington state case.

In 2023, Bhargava briefly controlled the publishing operations for Sports Illustrated, an arrangement that ended after six months amid a lawsuit alleging breach of contract and failure to make payments.^[6]

Bhargava is a signatory of the Giving Pledge and founded the Billions in Change organization to fund humanitarian projects.^[7] However, his philanthropic activities are the subject of a major federal investigation. The Internal Revenue Service (IRS) and the U.S. Senate Finance Committee are examining a multi-million-dollar charitable tax deduction Bhargava claimed in 2009. A federal grand jury has subpoenaed his financial records to determine whether he improperly claimed deductions for assets over which he retained control.^[8][9][10]

Early life and education

Bhargava was born in Lucknow, India in 1953.^[1][11] At the age of 14, he moved with his family to the United States, where his father pursued a doctorate at the University of Pennsylvania's Wharton School.^[12][1] After showing an aptitude for mathematics, Bhargava attended The Hill School on a scholarship and enrolled at Princeton University in 1972. He left the university after one year.^[11][13][14]

Career

Early career

In 1974, Bhargava returned to India and spent more than a decade at an ashram named Hanslok, which was associated with Guru Shri Hans Ji Maharaj.^[13][12]

Bhargava returned to the United States in the mid-1980s and joined his family's plastics manufacturing business in Indiana.^[15] He later acquired and managed several plastics companies. He sold the business in 2006.^[14][16]

5-hour Energy and other ventures

In 2003, after attending a natural products trade show, Bhargava developed a two-ounce caffeinated beverage which was launched in 2004 as 5-hour Energy. The product gained market traction, and by the early 2010s, his company’s, Living Essentials (a subsidiary of Innovation Ventures), retail sales had grown to an estimated $1 billion. By the early 2010s, Living Essentials had participated in up to 90 court cases against competitors, suppliers and associates and its sales had declined considerably.^[17] Over time, Bhargava created additional entities or funds to support a variety of new ventures.^[14] These included the capital venture company MicroDose Life Sciences,^[18] a manufacturing venture laboratory called Stage 2 Innovations LLC,^[19] a private equity fund called ETC Capital LLC, Plymouth Real Estate Holdings LLC^[14][15] and Oakland Energy and Water Ventures.^[20] In 2014, he financed a New York City-based film distribution company, Bleecker Street.^[21]

Product safety and advertising controversies

The growth of 5-hour Energy led to scrutiny from regulators. In 2012, it was reported that the U.S. Food and Drug Administration (FDA) had received filings citing 5-hour Energy in relation to consumer deaths and serious health incidents. By 2015, the FDA was investigating more than 20 fatalities potentially linked to the product.^[22]

Attorneys general in several states initiated legal action against the makers of 5-hour Energy, alleging deceptive advertising.^[22] By the mid-2010s, 33 states had jointly investigated the company.^[22] In 2017, a Washington state court ruled that 5-hour Energy's advertising had violated consumer protection laws, ordering the company to pay approximately $4.3 million in fines and legal fees.^[23] Living Essentials denied wrongdoing but paid the penalties. The company also faced consolidated class-action lawsuits from consumers alleging false advertising.^[22]

Political spending and investigations

During this period, Bhargava and his companies became major political donors. From 2009 onward, entities linked to 5-hour Energy contributed at least $5.3 million to state-level political campaigns, including over $1.2 million to state attorneys general or their associations.^[22] In 2014, his investment firm donated $2.5 million to the Republican Governors Association. Observers noted that the timing of this political spending coincided with state-level investigations and lawsuits targeting 5-hour Energy.^[22]

Antitrust and market practices

In 2018, a group of wholesalers filed an antitrust lawsuit against Living Essentials. The suit alleged that the company provided Costco Wholesale with exclusive discount pricing in violation of U.S. price discrimination laws. In 2024, the U.S. Supreme Court declined to hear an appeal from the company, allowing the lawsuit to proceed.^[24]

In November 2024, rival company Vitamin Energy filed a $1 billion lawsuit against Bhargava and Living Essentials, alleging monopolistic practices. The suit claims 5-hour Energy used exclusive retail agreements to prevent competitors' products from being displayed prominently, thereby suppressing competition. The lawsuit also alleges false advertising regarding the product's benefits. These cases were ongoing as of late 2024.^[25]

Sports Illustrated publishing venture

In 2023, Bhargava gained control of the publishing operations for Sports Illustrated magazine through a licensing arrangement. His involvement lasted approximately six months. In April 2024, the magazine's owner, Authentic Brands Group (ABG), sued Bhargava for breach of contract, seeking $50 million in damages. The lawsuit alleged that Bhargava failed to make millions of dollars in licensing payments and had planned to terminate the magazine's staff. The complaint filed by ABG described Bhargava as a "gangster" and accused him of making discriminatory remarks. ABG terminated the licensing agreement, ending Bhargava's role with the magazine.^[26]

Philanthropy and tax evasion investigation

Bhargava has publicly committed to philanthropy, joining the Giving Pledge in 2015 and promising to donate over 90% of his fortune.^[27][28] He founded Billions in Change to develop technologies for impoverished communities, including a stationary bicycle generator and a water filtration system. Bhargava produced a documentary film Billions in Change (2015) to showcase these efforts.^[28][19][29] Despite the initial fanfare, many of the projects failed to deliver on their promises.^[30]

His charitable giving methods have become the subject of investigation. In 2009, Bhargava announced a donation of a 45% stake in Living Essentials, valued at approximately $1 billion, to the Rural India Supporting Trust, a charity he established. The trust later sold this stake to a separate entity linked to Bhargava in exchange for a $624 million promissory note. This transaction allowed Bhargava to claim a large tax deduction.^[31]

In 2018, the Internal Revenue Service (IRS) retroactively disallowed the tax deductions. Federal authorities subsequently began an investigation into his finances. By 2023–2024, the U.S. Senate Finance Committee was examining the transactions, and a federal grand jury had issued subpoenas for his financial records. Investigators are focused on whether Bhargava improperly claimed charitable deductions for assets over which he retained control. The investigation is also examining offshore holdings. Senator Ron Wyden, chair of the Senate Finance Committee, suggested the case could result in one of the largest tax penalties in U.S. history. The investigation was ongoing as of 2025.^[30]

Recent ventures

In January 2022, Bhargava purchased 90% of Freelancer Television Broadcasting, including television network NewsNet and television stations WMNN-LD and WXII-LD through his company MBX Wyoming Inc.^[32][33] Under his leadership, the network aimed to expand its reach and modernize its operations through non-biased content. It was expanded nationally and added a 24-hour sports network called Sports News Highlights. However, in August 2024, following a strategic review of the media business, the network underwent a restructuring that included the difficult decision to cease operations.^[34][35]

In 2023, Bhargava launched several hydration drink brands – True Hydration, Cellular Hydration, and Natural Glow Hydration.^[36][37]

In August 2023, Bhargava acquired a majority stake in Ross Levinsohn's The Arena Group, owner of several magazine brands.^[38]

Personal life

Bhargava is married, with one child, and lives in Farmington Hills, Michigan, US.^[13]