Its legal challenges have also continued, according to the Wall Street Journal. In bankruptcy documents, the company included a $115 million settlement with PepsiCo among large unsecured debts. (PEP), over a distribution deal that went wrong. That's because the deal is pending a review by the Federal Trade Commission, which sent a second request to Bang Energy and Monster on June 22 seeking more information about the planned acquisition.īang Energy has been in business since 1993, developing performance beverages, supplements and workout products, including Meltdown, Quash, Vooz and Redline.īut the company became mired in lawsuits, including one filed by PepsiCo Inc. "While Monster is hopeful that the transaction will be completed, there is no guarantee that it will receive Bankruptcy Court approval," the company said Monday. The deal announced Monday is subject to the approval of the bankruptcy court. Bang Energy had claimed its "miracle drink" could "reverse mental retardation" and help cure neurological disorders. Monster had argued that Bang Energy's drinks do not contain Creatine, which is a substance used in workout supplements, and that "Super Creatine" offered zero health benefits. In April, it was ordered to stop marketing drinks as containing "Super Creatine," as Reuters reported. Monster brought the suit in 2018 on the grounds that Bang Energy was making misleading claims about the physical and mental health benefits of its performance drinks. In a filing last week with the bankruptcy court, Monster (MNST) said it would pay $362 million for Bang's assets, which include its energy drinks and a facility in Phoenix, AZ.īang Energy, which is owned by Florida-based Vital Pharmaceuticals, filed for bankruptcy last October after it was sued by Monster for false advertising and other alleged misconduct with a California jury awarding Monster $293 million. has agreed to acquire out of bankruptcy its smaller rival Bang Energy after the drinks giant played a role in that company's demise. Bang Energy went bankrupt in part because of a $293 million settlement with Monster
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