Molson Coors Brewing Company (TAP) Accused of Misrepresenting Its Financial Condition

According to the complaint against the company's officers and directors for alleged breaches of fiduciary duties and unjust enrichment, Molson Coors Brewing Company (TAP) filed several financial reports with the U.S. Securities and Exchange Commission attesting that the documents fairly represented the financial condition of the company and that the company's internal controls were effective. It came as a surprise to investors when Molson revealed on February 12, 2019, that its financial statements for the years ended December 31, 2016 and December 31, 2017, should be restated because the company found a material weakness in its internal control over financial reporting.  The company cited errors in the accounting for income taxes related to the deferred tax liabilities for its partnership in MillerCoors, LLC.  As a result, Molson would need to increase its deferred tax liabilities and deferred tax expense by $399.1 million, with a corresponding decrease in net income and earnings per share.  On this news, Molson's stock fell over 9% to close at $59.19 per share on February 12, 2019, and has yet to recover.