Kahn Swick & Foti, a New Orleans securities litigation firm, said it is investigating “whether Molson Coors’ officers and/or directors breached their fiduciary duties to Molson Coors shareholders or otherwise violated state or federal laws.”
The “investigation” follows the filing of a class action lawsuit alleging Molson Coors and some executives failed to disclose material information in connection with the acquisition of its remaining interest in MillerCoors LLC in the fourth quarter of 2016.
That lawsuit was in response to an announcement by Molson Coors on Feb. 12, before the market opened, that its “previously issued 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” due to errors regarding the acquisition of its remaining interest in MillerCoors, LLC in 4Q16, and that such restatements would “increase its deferred tax liabilities and deferred tax expenses by $399.1 million, with a corresponding decrease in net income and earnings per share.”
Footnote: We went back and scanned the earnings release the company issued on Feb. 12 and did not see the restatement clearly mentioned. In the political world, that would be viewed as a coverup. But it’s almost impossible to cover up bad financial news, so the best thing for a company to do is to highlight the restatement as quickly as possible.