Original Article appeared in Bloomberg News
The New York attorney general investigating three energy-drink makers including Detroit-based 5-Hour Energy, over marketing practices.
Attorney General Eric Schneiderman in July subpoenaed PepsiCo Inc., maker of the Amp energy drink, as well as Monster Beverage Corp. and Living Essentials LLC of Farmington Hills, said the person, who declined to be named because the person wasn't authorized to speak publicly about the probe.
The 5-Hour Energy brand dominates the energy shot sector of the market.
Schneiderman's office is investigating the companies' marketing practices and ingredient disclosures, including whether energy drinks are improperly marketed as dietary supplements, the person said. The companies also don't disclose the true amount of caffeine in the drinks, the person said.
A spokeswoman for 5-hour Energy, said the company had no additional comment beyond an earlier bond offering filing.
"We will appropriately disclose any new, material information," she said Tuesday.
The parent company of 5-Hour Energy is putting together a $400 million bond offering to help it expand its product line and explore strategic acquisitions, according to the July bond documents.
In March, Living Essentials founder and CEO Manoj Bhargava joined the Forbes magazine's worldwide billionaire's list.