October 23, 2012
Tragic news coming from Monster Beverage (Nasdaq: MNST ) today, as it receives backlash over allegations that its products have led to health issues and, in some cases, death. The company now faces an FDA investigation and potential lawsuits and has lost a reported $3.5 billion in market cap within the past two days.Â This shouldn't become as big as the tobacco lawsuits from a few years ago, but Blake cautions that no matter how the chips fall, there is a huge risk of market-share loss, and that's something investors need to weigh in their risk calculations.
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Editor's note: A previous version of the text above indicated a comparison to tobacco lawsuits that was incorrect. The Fool regrets the error.