Carlsbad company sues makers of Monster

A Carlsbad-based management company filed a multimillion dollar lawsuit against the makers of Monster energy drinks alleging fraud and intentional interference with contractual claims, it was announced Friday.

The Superior Court suit was filed Tuesday in Vista by Crown Athlete Management Co. against Hansen Beverage Co., doing business as Monster Beverage Co.

The lawsuit alleges that Monster fraudulently induced Crown AMG to enter into agreements, fraudulently concealed its true intentions to exclude Crown AMG from earning fees and commissions, and made numerous false promises to Crown AMG about potential future business opportunities.

A spokesman for Corona-based Hansen Beverage Co. said she was not allowed to comment on the suit. According to the lawsuit, Crown AMG was founded in 2003 as a comprehensive marketing, branding and athlete management firm.

That same year, Crown AMG was recruited by Monster President Mark Hall to help market and build brand recognition for the “new” Monster Energy Drink, which had been launched in 2002, according to the lawsuit.

Over the next six years, according to the suit, Crown AMG was instrumental in building brand recognition for Monster worldwide. According to the suit, HBC’s sales skyrocketed from $115 million in 2002 to $1.18 billion in 2008, helping HBC land the number one position of the Forbes 200 Best Small Companies List in 2005 and 2007.

In its lawsuit, Crown AMG alleges that Monster unlawfully interfered with Crown AMG’s business, by, among other things, filing lawsuits against Crown AMG clients, instructing Crown AMG clients not to pay Crown AMG, and making false representations to Crown AMG and its clients.

This story was written and edited by City News Service.

Tags: Crown Athlete Management Co., Forbes 200 Best Small Companies List, Hansen Beverage Co., Monster energy drink lawsuit, Monster President Mark Hall, SDNN

This entry was posted on Friday, November 6th, 2009 at 4:38 pm and is filed under Local News. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.