Robbins Umeda LLP Announces an Investigation of Monster Beverage Corporation
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors of Monster Beverage Corporation (NASDAQ: MNST). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda is investigating whether the company’s officers and directors caused the company to improperly promote, advertise, and market its Monster Energy® brand of energy drinks.
On August 9, 2012, in a Form 10-Q securities filing, Monster disclosed that it had received a subpoena from an unspecified state attorney general in July regarding its “advertising, marketing, promotion, ingredients, usage and sale of its Monster Energy brand of energy drinks.” On this news, Monster shares declined 11% on August 10, 2012, to close at $54.27. Then on August 28, 2012, The Wall Street Journal revealed that New York’s attorney general Eric T. Schneiderman is investigating whether Monster is deceiving consumers regarding the ingredients and health value of Monster’s products. While the investigation is in its early stages, investigators are examining whether the “benefits of exotic-sounding ingredients” have been overstated while the effects of caffeine have been downplayed.
Robbins Umeda LLP highlights that Monster shareholders have the option to file a shareholder derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.