Monster Beverage Corporation Responds to Report by Short Seller Containing Inaccurate and Misleading Statements
Rhea-AI Summary
Monster Beverage (NASDAQ: MNST) has issued a strong rebuttal to a report published by short-selling firm Spruce Point Capital Management on April 8, 2025. The company firmly rejected what it characterized as false and misleading statements about its business operations.
Co-CEOs Rodney Sacks and Hilton Schlosberg emphasized Monster's commitment to ethical operations and transparent reporting, dismissing the short seller's document as containing inaccuracies designed to manipulate the company's share price. They affirmed that all financial statements filed with the SEC remain fairly stated and compliant with accounting principles.
The Board of Directors, through Lead Independent Director Mark Vidergauz, expressed full confidence in the management team and the company's strategic direction. Monster stated it would not provide further comments on the report, citing its lack of credibility.
Positive
- Strong board support for management team
- Clear stance on financial reporting integrity
- Unified response from company leadership
- Transparent communication with stakeholders
Negative
- Presence of short seller targeting the company
- Potential market uncertainty due to allegations
- Need to address market concerns about operations
- Possible short-term share price volatility
News Market Reaction 1 Alert
On the day this news was published, MNST gained 5.89%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
CORONA, Calif., April 09, 2025 (GLOBE NEWSWIRE) -- Monster Beverage Corporation (NASDAQ: MNST) (“Monster” or the “Company”) today issued the following statement in response to a report issued on April 8, 2025 by a short-selling firm, Spruce Point Capital Management, containing false and misleading characterizations about the Company’s business from non-credible sources.
Rodney Sacks and Hilton Schlosberg, Chairman and Vice Chairman, respectively, and Co-Chief Executive Officers of the Company, jointly stated: “We have always prided ourselves on having and continue to have a strong reputation for ethical operations and transparent reporting, and these principles remain critically important to all of us at Monster. The document released by a self-interested activist short seller is filled with and based on inaccuracies and aspersions that appear to be designed to distort the Company’s record and share price for its own gain. The Company’s management remains focused on the business with the ongoing objective of creating long-term value for our stakeholders and investors.
“The Company’s consolidated financial statements and other financial information filed with the Securities Exchange Commission (“SEC”) have historically been and continue to be fairly stated in all material respects, presented in accordance with generally accepted accounting principles and are governed by SEC rules and regulations.”
The Board of Directors of the Company (the “Board”) affirmed its confidence in the Company’s management and strategic direction. Lead Independent Director, Mark Vidergauz, stated: “On behalf of the entire Board, we stand in support of the management team and believe that the Company remains well-positioned for long-term success.”
The Company does not believe the report issued by Spruce Point Capital Management has any credibility and accordingly does not intend to comment further on the report.
Monster Beverage Corporation
Based in Corona, California, Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company’s subsidiaries develop and market energy drinks, including Monster Energy® drinks, Monster Energy Ultra® energy drinks, Juice Monster® Energy + Juice energy drinks, Java Monster® non-carbonated coffee + energy drinks, Monster Killer Brew™ Triple Shot, Rehab® Monster® non-carbonated energy drinks, Monster Energy® Nitro energy drinks, Reign® Total Body Fuel high performance energy drinks, Reign Storm® total wellness energy drinks, NOS® energy drinks, Full Throttle® energy drinks, Bang Energy® drinks, BPM® energy drinks, BU® energy drinks, Burn® energy drinks, Live+® energy drinks, Mother® energy drinks, Nalu® energy drinks, Play® and Power Play® (stylized) energy drinks, Relentless® energy drinks, Samurai® energy drinks, Ultra Energy® drinks, Predator® energy drinks and Fury® energy drinks. The Company’s subsidiaries also develop and market still and sparkling waters under the Monster Tour Water® brand name. The Company’s subsidiaries also develop and market craft beers, flavored malt beverages and hard seltzers under a number of brands, including Jai Alai® IPA, Dale’s Pale Ale®, Dallas Blonde®, Wild Basin® hard seltzers, The Beast™ and Nasty Beast® Hard Tea. For more information visit www.monsterbevcorp.com.
| CONTACTS: | Rodney C. Sacks Chairman and Co-Chief Executive Officer (951) 739-6200 | |
| Hilton H. Schlosberg Vice Chairman and Co-Chief Executive Officer (951) 739-6200 | ||
| Roger S. Pondel / Judy Lin PondelWilkinson Inc. (310) 279-5980 |
FAQ
What allegations did Spruce Point Capital make against Monster Beverage (MNST) on April 8, 2025?
How did Monster Beverage (MNST) respond to Spruce Point Capital's short seller report?
What was the Monster Beverage (MNST) Board's stance on the short seller allegations?
Will Monster Beverage (MNST) take any further action regarding the Spruce Point Capital report?
How did Monster's leadership address concerns about financial reporting accuracy?
