Molson Coors Brewing Co. is investigating a complaint about the sale of company stock connected to options exercised by two of its top executives, the company said Thursday in a regulatory filing.
The complaint raises concerns about stock options exercised by chief executive officer Leo Kiely and chief financial officer Timothy Wolf after the merger of Adolph Coors Co. and Molson Inc. in February, according to the Securities and Exchange Commission filing. Previous SEC filings show that Wolf and Kiely pocketed more than $1.6 million through stock options and sales about a week after the merger.
Molson Coors said its audit committee and an independent firm are investigating the complaint, received in the third quarter. Company spokeswoman Aimee Valdez declined to disclose who filed it.
“The board of directors has full confidence in senior management,” the company’s filing states.
On Feb. 14, Wolf exercised options on 29,146 shares for $1.25 million and sold 33,029 shares for $2.34 million, profiting by just more than $1 million.
On Feb. 17, Kiely profited by $654,500 after exercising options covering 13,200 shares.
Molson and Coors completed their merger Feb. 9. Molson Coors has dual headquarters in Denver and Montreal.
The complaint also questioned the exercise of stock options by Molson Inc. option holders before the merger and before a special dividend was paid to Molson Inc. shareholders, according to the SEC filing. The complaint also raised concerns over statements made about the dividend to Molson Inc. shareholders.
Further, Molson Coors noted in the SEC filing that a fourth class-action lawsuit was filed against the company Aug. 17 in U.S. District Court in Delaware on behalf of participants of the company’s 401(k) retirement plan. The latest lawsuit claims Molson Coors misled investors about Coors’ financial health.
“The company and its senior executives engaged in a fraudulent scheme intended to artificially inflate the price of Molson Coors common stock,” according to the lawsuit, filed by Havorford, Pa.-based law firm Chimicles & Tikellis.
Three other class-action lawsuits were filed in May.
Staff writer Andy Vuong can be reached at 303-820-1209 or avuong@denverpost.com.
