Monster Beverage Corp (NASDAQ:MNST) Investor Files Securities Class Action Lawsuit Over Alleged False and Misleading Statements
Aug. 21, 2012 (Shareholders Foundation) -- An investor in shares of Monster Beverage Corp (NASDAQ:MNST) filed a lawsuit in the U.S. District Court, Central District of California against Monster Beverage Corp over alleged securities laws violation in connection with allegedly false and misleading statements.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired Monster Beverage Corp (NASDAQ:MNST) securities between February 23, 2012 and August 9, 2012, that Monster Beverage Corp and certain of its top officials violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by issuing between February 23, 2012 and August 9, 2012, allegedly materially false and misleading statements regarding its business, operational and compliance policies.
Specifically the plaintiff alleges that Defendants made allegedly false and/or misleading statements and/or failed to disclose that Monster Beverage Corp was improperly advertising, marketing and promoting its Monster Energy(R) brand of energy drinks and that as a result of the above, Monster Beverage Corp’s financial statements were materially false and misleading at all relevant times.
Monster Beverage Corp reported that its annual Revenue rose from over $1.03 billion in 2008 to over $1.7 billion in 2011 and its Net Income over the respective time periods rose from $108.03 million in ’08 to $286.22 million in 2011.
Then, on August 9, 2012, Monster Beverage Corp (NASDAQ:MNST) disclosed in a filing with the Securities and Exchange Commission that in July 2012, it received a subpoena from a state attorney general in connection with an investigation concerning the Company’s advertising, marketing, promotion, ingredients, usage and sale of its Monster Energy® brand of energy drinks.
Shares of Monster Beverage Corp (NASDAQ:MNST) fell from over $68 per share on August 7, 2012, to as low as $52.11 per share on August 13, 2012.
On August 21, 2012, NASDAQ:MNST shares closed at $60.68 per share.