Monster (MNST) Sued in San Francisco Over Marketing Practices

May 6, 2013 11:52 AM EDT
Monster (Nasdaq: MNST) is being sued in California after running ads targeted at kids despite recent revelations that there might be some health risks associated with the beverage.

San Francisco City Attorney Dennis Herrera took the lawsuit out on Monster. Last week, the Company sued San Francisco, alleging that Herrera was overstepping his authority in trying to pressure the company into curbing/altering its marketing tactics.

Herrera's case states that scientists have warned that consumption of high-caffeine drinks could lead to brain seizures and cardiac arrests in adolescents. He noted that Monster targets to kids as young as six years old, commenting, "Monster also targets children and teenagers by promoting a 'lifestyle' that features extreme sports, music, gaming, military themes and scantily-clad 'Monster Girls."

Monster didn't comment on the recent activity, simply saying in the past that a 16-ounce can of it beverage contained about 160-milligrams of caffeine, roughly half the per-ounce equivalent as a cup of Starbucks coffee.

Last Friday, the FDA said it was launching an investigation into the "safety of added caffeine in food products—noting "particularly its effects on children and adolescents"—in response to an unfortunate growing trend in which beverage and food manufacturers are adding caffeine to their products."


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