Lieff Cabraser Lawfirm Sues Monster Beverage Corp. For Misleading Financial Statements
The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action lawsuits have been brought against Monster Beverage Corp. on behalf of all persons who purchased the securities of Monster Beverage Corp. between Feb. 23, 2012 and Aug. 9, 2012.
Background on the Monster Securities Class Litigation
According to the Lieff Cabraser lawfirm, the actions are brought against Monster and certain of its officers for violations of the Securities Exchange Act of 1934. The complaints allege that, throughout the class period, defendants made materially false and misleading statements regarding Monster’s business, operational and compliance policies. In particular, defendants misrepresented and failed to disclose that the company was improperly advertising, marketing and promoting its Monster Energy® brand of energy drinks and that, as a result of the above, Monster’s financial statements were materially false and misleading at all relevant times.
On Aug. 8, 2012, after the market closed, the company disclosed financial results that failed to meet analysts’ expectations. On this news, Monster stock dropped $6.57 per share, or nearly 10 percent, to close at $61.20 per share on the following day.
On Aug. 9, 2012, after the market closed, the company disclosed that it had “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.” On this news, Monster stock dropped an additional $6.93 per share, or nearly 11 percent, to close at $54.27 per share on Aug. 10, 2012.
