Texas Attorney General Ken Paxton launched an investigation into Celsius Holdings (CELH) and its subsidiary brand, Alani Nu. The probe examines potential violations of the Texas Deceptive Trade Practices Act. Investigators are focusing on the use of colorful packaging and youth-oriented branding to market products to minors.
Alani Nu beverages are sold in 12-ounce cans. Each serving contains 200 mg of caffeine. The attorney general’s office alleges that packaging provides insufficient warnings regarding health risks for adolescents.
The investigation follows a lawsuit involving the death of a Texas teenager allegedly linked to Alani Nu consumption. Celsius shares fell following the announcement of the probe.