LAWSUITS NEWS & LEGAL INFORMATION
Monster Settles Securities Class Action Lawsuit for $16M
This is a settlement for the Securities/Stock Fraud lawsuit.
Los Angeles, CA: Monster Beverage Corp, has agreed to pay over $16 million in settlement of a securities class action lawsuit it' currently facing. The lawsuit contends that the energy drink manufacturer overstated the benefits of a distribution deal with Anheuser-Busch Co, causing the stock to artificially increase in value.
According to documents filed in California federal court this week, Monster, previously known as Hansen Natural Corp when the lawsuit was filed in September 2008, will pay the settlement to investors who purchased shares of the company' stock between November 9, 2006, and November 8, 2007. As part of the agreement, Monster has denied any wrongdoing.
Late in 2008, the court consolidated this lawsuit with another similar suit brought by Structural Ironworkers Local Union No. 1 Pension Fund, designating the union fund as the lead plaintiff, according to court records. Reportedly, the pension fund bought 4,400 shares of Hansen Natural stock in October 2007 at $63.93 apiece, which were later sold at $43.30 a share, for a loss of nearly $91,000.
Monster – aka Hansen allegedly made misleading financial statements about its financial results, and misrepresented the performance of its Allied energy drinks in November 2006 and then "collapsed"a year later after the company disclosed its true financial position. The lawsuit alleged that the stock price fell more than 23 percent in a single day following a report of the company' true financial condition.
The case is Cunha v. Hansen Natural Corp., case number 5:08-cv-01249, in the U.S. District Court for the Central District of California.
Published on Apr-17-14
According to documents filed in California federal court this week, Monster, previously known as Hansen Natural Corp when the lawsuit was filed in September 2008, will pay the settlement to investors who purchased shares of the company' stock between November 9, 2006, and November 8, 2007. As part of the agreement, Monster has denied any wrongdoing.
Late in 2008, the court consolidated this lawsuit with another similar suit brought by Structural Ironworkers Local Union No. 1 Pension Fund, designating the union fund as the lead plaintiff, according to court records. Reportedly, the pension fund bought 4,400 shares of Hansen Natural stock in October 2007 at $63.93 apiece, which were later sold at $43.30 a share, for a loss of nearly $91,000.
Monster – aka Hansen allegedly made misleading financial statements about its financial results, and misrepresented the performance of its Allied energy drinks in November 2006 and then "collapsed"a year later after the company disclosed its true financial position. The lawsuit alleged that the stock price fell more than 23 percent in a single day following a report of the company' true financial condition.
The case is Cunha v. Hansen Natural Corp., case number 5:08-cv-01249, in the U.S. District Court for the Central District of California.
Legal Help
If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please fill in our form.Published on Apr-17-14
READ MORE Consumer Fraud Settlements and Legal News
READ MORE Food/Drink Settlements and Legal News
READ MORE Securities Settlements and Legal News