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LaCroix Maker Sinks to Lowest Since 2016 After Report of a New Lawsuit

LaCroix Maker Sinks to Lowest Since 2016 After Report of a New Lawsuit

(Bloomberg) -- National Beverage Corp. fell as much as 10% to the lowest since September 2016, after Business Insider reported on an employment lawsuit connected to issues regarding the company’s claims over whether or not its products contained toxic chemicals.

National Beverage responded in an email to Bloomberg News, saying all LaCroix beverages have been produced in cans without BPA liners since April. The company began converting to BPA-free liners two years ago. National Beverage says FDA has said that BPA liners are safe and pose no risk at the trace levels found in can linings of food and beverage products.

“False statements were made in litigation brought by a former employee seeking to extract a monetary recovery from the company,” National Beverage said in the email. “We intend to vigorously defend our company and our brands against false claims brought by this disgruntled former employee.”

It’s the third consecutive day of declines for the stock, which has dropped 40% year-to-date. On May 30, a Guggenheim analyst said industry data shows sales are “effectively in free fall” and cut his price target to a street low of $36.

The lawsuit follows a series of claims against the company in the past year. In January, a proposed class action suit claimed the the company deceptively labeled its sparkling water “all natural” even though it contains synthetic flavoring ingredients.

To contact the reporter on this story: Joshua Fineman in New York at jfineman@bloomberg.net

To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Morwenna Coniam

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