Celsius Faces Texas AG Investigation Over Marketing of High-Caffeine Drinks

MT Newswires Live06-05

Celsius (CELH) is facing an investigation by Texas Attorney General Ken Paxton over the company's marketing practices related to its energy drinks containing high levels of caffeine, the attorney general's office said in a Thursday statement.

The office said Celsius and its subsidiary Alani Nutrition market energy drinks using youth-oriented packaging and branding, despite products containing high caffeine levels. It said this raises concerns over whether the company is marketing a potentially harmful product to children and adolescents.

Paxton said the office will investigate whether Celsius and Alani misled consumers regarding the safety of their products in violation of the Texas Deceptive Trade Practices Act.

Celsius did not immediately respond to a request for comment from MT Newswires.

Shares of Celsius were down 4.5% in Thursday afternoon trading.

Price: 28.66, Change: -1.36, Percent Change: -4.52

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