Monster says short seller report contains ‘false, misleading’ characterizations

Monster Beverage (MNST) Corporation issued the following statement in response to a report issued on April 8, by a short-selling firm, Spruce Point Capital Management, which it said contained, “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-CEO, 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 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 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.