US: Coca-Cola settles eight year lawsuit
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.
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Coca-Cola Hellenic Bottling Co has said that its two major stakeholders, The Coca-Cola Co and Kar-Tess Holding, have extended their shareholders' agreement for the drinks bottler....
Asahi Breweries has lined up the acquisition of Cadbury's soft drinks business in Australia....
The Coca-Cola Co has defended its Diet Coke Plus drink against an allegation by the US Food and Drug Administration that the product breaches the law....
Investor Nelson Peltz has increased his stake in soft drinks group Dr Pepper Snapple, via private investment group Trian Fund Management....
Analysts have reacted positively to Coca-Cola Enterprises' announced restructuring plan and news that the bottler's 2008 earnings will not be as bad as feared....
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