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Monster Beverage Corporation Message Board

  • bargains_galore bargains_galore Jun 24, 2013 9:05 AM Flag

    AMA going forward

    We haven't seen the end of the fall-out from the AMA action. They are a powerful lobby in every state capital as well as in Washington.

    This could result in multiple laws in the various states as well as at the federal level, leading to higher distribution costs impacting the profit margin and'/or resulting in raising prices which would cramp sales.

    The AMA action will also impact the ongoing legal challenges facing MNST. The San Francisco case will probably be a slam dunk.

    The wrongful death suit in MD could also get a boost, since the potential jury will probably become aware of the position of the AMA. Since the AMA now says the MNST energy drink potentially kills, chances are the jury will agree.

    A loss in the MD case will bring out other wrongful death suits, and may also trigger class-action suits concerning the hundreds of victims that went to emergency rooms.

    As well as the huge legal costs (already impacting earnings as reported last q.), MNST could be out millions in penalties, leading to bankruptcy within about 5 years as a flood of new cases are brought forward.

    JMHO, of course.

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