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Monster Beverages has agreed to settle a class-action lawsuit that was filed by shareholders six years ago.
The suit alleged that Monster Beverage inflated its stock price through improper financial reporting, a charge that the Corona-based company still denies, according to a statement posted on the company’s website.
In the proposed agreement, which must be approved in court, Monster Beverage agrees to pay an undisclosed sum to the defendants and their attorneys but does not admit liability or wrongdoing in the case.
“We are fully confident that we would have prevailed if the litigation had proceeded,” said Rodney C. Sacks, Monster Beverage’s chief executive officer, in a statement posted on the company’s website. “Nevertheless, given the terms of the settlement, the payment of which is being funded by insurance carriers entirely, we believe it’s in the country’s interest to put this matter behind us.”
Cunha vs. Hansen Natural Corp. was filed in September 2008 in federal district court in Los Angeles.
