Monster Beverage Fights Off Diversity Derivative Suit, for Now

Monster Beverage Corp. fought off a derivative suit alleging company leadership failed to live up to its promises on corporate diversity, but a federal judge in California will allow the shareholder to try again.

The shareholder alleged that Monster directors and officers didn’t ensure compliance with antidiscrimination laws and misrepresented the energy drink company’s commitment to inclusion. But the shareholder didn’t demonstrate that making a required pre-suit demand on Monster’s board would have been futile and was thus excused, the U.S. District Court for the Central District of California said.

The complaint challenged the lack of diversity on Monster’s ...