Summary of Case:
Scott + Scott has filed a securities class action against Hansen Natural Corp. (Ticker: HANS) ("Hansen Natural" or the "Company") on behalf of common stock purchasers from May 23, 2007 through November 23, 2007 (Class Period) in the United States District Court for the Central District of California. The deadline to file for lead plaintiff is November 10, 2008.
The complaint alleges that during the Class Period, Hansen Natural issued materially false and misleading statements that misrepresented and failed to disclose: (a) that Hansen Natural's second quarter sales results were materially impacted by inventory loading as customers were induced to purchase more product before the Company raised its prices in its Monster Energy drink line and its Java Monster drink line; (b) that the Company was experiencing declining sales in its non-core drink lines; (c) that the Company was experiencing production shortfalls with its Java Monster drink line; and (d) that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
On November 8, 2007, the Company issued a press release announcing its financial results for the third quarter of 2007, the period ended September 30, 2007. For the quarter, the Company reported lower than expected revenue growth and decreasing profit margins. Following this earnings announcement, shares of the Company's common stock fell $13.17 per share, or 23%, to close at $43.50 per share, on heavy trading volume.
