New Securities Class Action Filed Against Monster Beverage Corporation
A new class action securities-fraud lawsuit has been filed against Monster Beverage Corporation (NASDAQ MNST), the makers of Monster energy drinks, in California federal court, alleging that the company failed to disclose improper advertising, marketing, and promotion of its Monster Energy® brand of energy drinks, rendering the company’s financial statements materially false and misleading.
The plaintiffs, who are shareholders purchasing Monster stock, seek to recover damages on behalf of all class members who purchased or otherwise acquired Monster stock between February 23, 2012 and August 9, 2012.
On August 9, 2012, Monster disclosed that it had received a subpoena from a state attorney general in connection with the company’s advertising, marketing, and promotion of its energy drinks. Concurrent with this announcement, from August 7, 2012 to August 13, 2012, Monster stock dropped 23% from $68 per share to $52.11 per share.
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