Monster sues Beats Electronics over Apple acquisition
Monster, one of the audio industry’s largest companies, has sued Apple’s Beats Electronics in San Mateo County’s Supreme Court. The lawsuit claims that Beats Electronics fraudulently acquired the line of headphones and its technology when HTC acquired a majority stake in 2011. Beats quickly purchased the majority stake back from HTC less than a month later according to the lawsuit, therefore resulting in what’s being called “corporate betrayal.”
Noel Lee, Monster CEO and the case’s co-plaintiff, also claims he was pushed to reduce his 5 percent stake in the company in 2012. The CEO than sold his remaining 1.25 percent stake back to Beats for $5.5 million, which now, according to the complaint, would have been worth more than $100 million.