NEW YORK, June 7, 2005 (PRIMEZONE) -- On May 13, 2005, Murray, Frank & Sailer LLP filed a class action lawsuit on behalf of a defined class of investors in connection to statements issued by Adolph Coors Company ("Coors") and Molson Inc. ("Molson").
The complaint alleges that defendants failed to disclose or misrepresented material information in communications made to investors of Molson and Coors. These communications failed to disclose that Coors's business was being, and foreseeably would continue to be, adversely impacted by conditions that were causing Coors to perform well below plan and consensus estimates. These communications had the effect of inflating the price of the common stock of the companies and providing false confidence in the merger between Coors and Molson which permitted defendants to effectuate the merger in a manner that allowed the relatives and heirs of the Coors and Molson families to dominate the combined Company, as detailed in the complaint. Plaintiff is seeking remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). The complaint was filed in the United States District Court for the District of Delaware.
The class action is on behalf of the following groups of investors:
(i) former shareholders of Molson who received shares of Molson
Coors (NYSE:TAP) as a result of the February 9, 2005 merger of
Molson by and into the Coors;
(ii) purchasers of the common stock of Coors from July 22, 2004
to February 9, 2005, inclusive; and
(iii) purchasers of the common stock of Molson Coors, following
completion of the merger between Molson and Coors on or about
February 9, 2005 to April 27, 2005, inclusive. Plaintiff is
seeking remedies under the Securities Exchange Act of 1934
(the "Exchange Act").
On April 28, 2005, only weeks after the merger closed, the Company announced disappointing results for the Company's first quarter of 2005, leading to the decline of the Company's common stock of nearly $14.50 per share, a decline of almost 20%. The same day, defendant O'Neill resigned from his post as Chair of Office of Synergies and Integration, taking with him $4.8 million as a severance payment.
Following the commencement of the class action on May 13, 2005, the price of Molson Coors' common stock has continued to languish. Numerous analysts downgraded their rating of the Company's stock following the April 28, 2005, announcement. In addition, on May 18, 2005, the Company announced that it was changing its approach with respect to its operations in Brazil which had continued to suffer losses and lower volumes leading up to the May 18, 2005 announcement.
If you purchased or otherwise acquired the securities defined above on any world exchange and sustained damages, you may, no later than July 12, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Christopher S. Hinton of Murray, Frank & Sailer LLP.