Coca-Cola Co has agreed to pay US$137.5m to settle a lawsuit led by two pension funds.

The Carpenters Health & Welfare Fund of Philadelphia and Vicinity and Local 144 Nursing Home Pension Fund - now called 1199 SEIU Greater New York Pension Fund - filed the lawsuit in 2000 in which it accused Coca-Cola of witholding information to increase its stock price.

The plaintiffs said Coca-Cola had not written down the value of "impaired assets" in Russia, Japan and other areas correctly therefore skewing financial results.

Investors filing the case said they lost US$1.75bn as a result of Coca-Cola's actions.

Coca-Cola said it has "vigorously fought these allegations for more than eight years".

"We maintain these allegations are without merit and no admittance of wrongdoing is a part of this settlement," said Crystal Warwell Walker, a spokesperson for Coca-Cola. "At this time we have determined that it is in the best interest of our business to close this matter and put this distraction behind us."

Following preliminary approval of the deal, The District Court of Atlanta has scheduled a fairness hearing for October.