Sports management agency Crown sues Monster energy drink maker for fraud, deceit
Associated Press
11/06/09 6:35 PM EST
CARLSBAD, CALIF. — Sports management agency Crown Athlete Management Co. said Friday it has sued the maker of the Monster energy drink, accusing it of fraud and other wrongdoing.
The lawsuit was filed over fees and commissions that Crown believes it was entitled to get from promoting the Monster energy drink. Monster Beverage Co., based in Corona, Calif., is a subsidiary of Hansen Natural Corp.
Crown lawyer Scott Shaw said the firm had established contracts with many action sports companies, in fields such as motocross, that entitled it to compensation for promotion of the Monster energy drink.
Crown claimed Monster Beverage Co. "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 Hansen consumer relations employee declined to comment on Friday, citing company policy.
Scott Sepkovic founded Crown in 2003, and the company said in a statement that Monster's president, Mark Hall, asked Sepkovic to help build the Monster energy drink brand. But Crown said Monster ultimately filed lawsuits against its clients, told Crown clients not to pay the management firm and lied to Crown and its clients.
Crown is based in Carlsbad, Calif.
