Alcohol giant Molson Coors (TAP) is accusing a former executive of embezzling nearly $10 million from the company in a complex fraud scheme.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Legal documents filed in court show that the brewing giant co-headquartered in Chicago and Montreal accuses former director of sales, Frank Ivankovic, of operating “a complex scheme to defraud the company” that also involved two subordinate employees.
The lawsuit alleges that Ivankovic approved fraudulent invoices from a pair of companies, which in turn funneled secret payments back to him and his wife. Molson Coors says the fraudulent invoices have drained $9.1 million from the company since 2021.
Molson Coors’ Restructuring
News of the embezzlement comes as Molson Coors restructures its operations and tries to revive sales of its beer and spirits. At the end of October, the company announced a sweeping reorganization of its Americas business, aiming to streamline operations and accelerate growth.
Molson Coors has also unveiled a new advertising campaign for the year-end holidays called “Just Bring The Beer.” Management has said that the ad campaign, which includes its Coors Light, Molson Canadian, and Blue Moon beer brands, “celebrates beer as the ultimate no-pressure, no-pretense crowd-pleaser that brings people together.”
Molson Coors has struggled with declining sales as people drink less alcohol and adopt healthier lifestyles.
Is TAP Stock a Buy?
Molson Coors’ stock has a consensus Hold rating among 16 Wall Street analysts. That rating is based on five Buy, 10 Hold, and one Sell recommendations issued in the last three months. The average TAP price target of $51.63 implies 10.77% upside from current levels.
