Monster Beverage Corp. has become the latest company to be sued for not having any black board members on the board.
Corona, California-based Monster Beverage is one of the few listed companies that does not have a single African American. according to the derivative shareholder complaint filed in the U.S. District Court in Santa Ana, California, on Friday. The trial, Frank Falta, derived on behalf of Monster Beverage Corp. v. Rodney Cyril Sacks et al. and Monster Beverage Corp. was first reported by D&O Diary.
Monster Beverage joins several other companies that have been sued for similar reasons, including Danaher Corp., The Gap Inc., Norton LifeLock Inc., Qualcomm Technologies, Facebook Inc. and Oracle Inc., with more disputes expected.
The complaint states that although board members "have repeatedly made erroneous statements in the company's public statements by claiming that they have a policy of engaging in diversity and inclusion" In reality, the defendants "have repeatedly resisted efforts to increase diversity at the top of the company.
The complaint lists the company's two top executives, Mr Sacks, its chairman and CEO, and Hilton Hiller, vice chairman, chief operating officer, chief financial officer and secretary, are "friends and other white billionaires from South Africa, where apartheid and racial discrimination persisted. to the 1
The company and its board members are accused in the lawsuit of breaches of the management duty, aiding and abetting breaches of the management duty, abuse of control, unfair enrichment and violations of securities laws.
The AGM requests that at least one of Monster's board members resigns before its annual meeting in April 2012 and is replaced by a black director, among other things.
A company spokesman could not be reached for comment.