Levi & Korsinsky Announces TAP Lawsuit; TAP Class Action
Levi & Korsinsky, LLP
March 6, 2019
Mathes v. Molson Coors Brewing Company et al 1:19-cv-01162 — On February 15, 2019, investors sued Molson Coors Brewing Company (“Molson Coors” or the “Company”) in United States District Court, Northern District of Illinois. Plaintiffs in the TAP class action allege that they acquired Molson Coors stock at artificially inflated prices between February 14, 2017 and February 11, 2019 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. For more information on the TAP lawsuit, please contact us today!
Summary of the Allegations
The Company (NYSE: TAP) is a globally recognized beverage business that makes and sells beer, among other types of drinks.
As such, Molson Coors boasts a history dating to the 18th century that has featured numerous mergers – including a few between industry giants – over the years. The Company’s current iteration is the result of a “merger of equals” between Molson and Coors in 2005, and several ensuing transactions.
According to its website, the Company ranked as the world’s third largest brewer as of 2016. Its products are sold in the United States, Canada, Europe, and internationally.
Summary of Facts
Molson Coors and two of its senior officers and/or directors (the “Individual Defendants”) are now accused of deceiving investors by lying and withholding critical information about the Company’s business practices and operations during the Class Period.
Specifically, they are accused of omitting truthful information about certain calculations and the efficacy of its internal controls over financial reporting from SEC filings and similar material. By knowingly or recklessly doing so, they allegedly caused Molson Coors stock to trade at artificially inflated prices during the time in question.
The truth came out before the market opened on February 12, 2019. At that time, the Company announced that its “previously consolidated financial statements as of and for the years ended December 31, 2017 and December 31, 2016 should be restated and no longer be relied upon.”
In a more detailed explanation the Company also stated: “As part of preparing its 2018 financial statements, the Company identified errors in the accounting for income taxes related to the deferred tax liabilities for its partnership in MillerCoors, LLC (“MillerCoors”).
A closer look…
As alleged in the February 15 complaint, the Company and/or Individual Defendants repeatedly made false and misleading public statements during the Class Period.
For example, a form filed with the SEC at the beginning of the Class period stated that: “the Company’s internal control over financial reporting was effective, excluding the internal control over financial reporting at its recently acquired stake in MillerCoors LLC.”
Then, in certifications accompanying another form filed with the SEC on February 14, 2018, the Individual Defendants attested to “the accuracy of financial reporting, the disclosure of any material changes to the Company’s internal control over financial reporting and the disclosure of all fraud.”
On the same form, the Company stated that its internal control over financial reporting was “effective as of December 31, 2017.”
Impact of the Alleged Fraud on Molson Coors’ Stock Price and Market Capitalization
|Closing stock price prior to disclosures:|
|Closing stock price the trading day after disclosures:|
|One day stock price decrease (percentage) as a result of disclosures:|
The following chart illustrates the stock price during the class period:
Actions You May Take
If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.
NOTE: The deadline to file for lead plaintiff in this class action is April 16, 2019. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.
In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Molson Coors common stock using court approved loss calculation methods.
Recently Filed Cases
Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action. Please contact us if you would like an LK report for any of these cases:
Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse. With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.
Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients. Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.
For additional information about this case or our institutional services, please contact us.