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New Glarus Brewery shareholders file lawsuit against owner

NEW GLARUS (WKOW) -- Three minority shareholders in New Glarus Brewery filed a lawsuit against the company and its majority owner Thursday, arguing that her business practices have denied them rightfully earned financial dividends.

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According to the suit, filed by attorneys representing shareholders Karin Eichhoff, Steven Speer and Rod Runyan in Dane County Circuit Court, brewery president and CEO Deb Carey has allegedly not met her fiduciary responsibilities to investors for a number of reasons, including but not limited to:

  • Using company resources to launch a distillery connected to New Glarus Brewery while owned solely by Carey and her husband Dan.
  • Withholding information on the proper valuation of stocks from shareholders.
  • Launching an Employee Stock Ownership Plan without enforcing the shareholder agreement with employees.
  • Threatening to not distribute funds to cover taxes on shareholders' investment, leaving them on the hook to pay taxes on money they've never received.
  • Allowing family members to purchase shares without committing to a shareholder agreement.

"Although the Brewery has become extremely successful over time, the defendants have thwarted the reasonable expectation of sharing in the profits and have instead operated the brewery for the benefit of Deborah Carey and her husband Daniel Carey," the lawsuit said.

In a phone call with 27 News, Deb Carey denied the claims listed in the suit, saying she feels the plaintiffs, largely Steven Speer, disagree with how she runs her business. Carey said the lawsuit "blindsided" her.

According to Carey, Speer disagreed with Carey's decision to keep New Glarus Brewing fully staffed during COVID-19. Carey tells 27 News Speer took the stance that the money should be directed to investors.

"They have my cell phone number," Carey said. "If they want to sell their stock, we would be happy to buy it."

Carey rebutted the claims made in the lawsuit, saying "nothing could be further from the truth," regarding the idea she withheld information about the true value of shareholders' stock.

"My goal is to make world-class beer and take care of our people," Carey told 27 News.

More at WKOW 27 News


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