According to the law firm press release, Monster markets and distributes energy drinks, fruit juice, smoothies, juice cocktails, iced teas, lemonades, and still water. The Company distributes its beverages in the United States and overseas.
The Complaint alleges that throughout the Class Period, the Company made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company was improperly advertising, marketing and promoting its Monster Energy® brand of energy drinks; and (ii) as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times.
On August 8, 2012, after the market closed, the Company disclosed financial results that failed to meet analysts’ expectations. On this news, Monster stock declined $6.57 per share or nearly 10%, to close at $61.20 per share on August 9, 2012.
The next day, 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 declined an additional $6.93 per share or nearly 11%, to close at $54.27 per share on August 10, 2012.
On September 13, 2012, Plaintiff filed a Notice voluntarily dismissing this action without prejudice as to all defendants.