Molson Coors Brewing Company and its board of directors are on the receiving end of a shareholder derivative lawsuit that alleges the defendants breached their fiduciary duties by publishing inaccurate financial results in annual SEC filings.
According to the case, Molson Coors filed 10-K forms for fiscal years 2016 and 2017 that indicated its comprehensive income as $2.125 billion and $2.126 billion, respectively. While preparing its 2018 financial statements, however, the company announced that its previous financial filings for 2016 and 2017 “should be restated and no longer be relied upon,” the suit says, and promptly published revised information for both years. According to the lawsuit, both years’ filings failed to properly account for the company’s deferred income tax liability concerning its investment in MillerCoors, LLC.
Following the defendants’ announcement, Molson Coors stock price reportedly fell by $6.17 per share, or 9.44 percent, and has yet to recover.