4 July, 2008 – Coca-Cola Co has agreed to pay US$137.5 million to settle a lawsuit in which it was accused of with-holding information to increase its stock price.
Investors bringing the case said they lost US$1.75 billion because of the actions of the Atlanta-based company.
The massive settlement, filed on Thursday in the US District Court in Atlanta, ended a legal battle that started in 2000. Coca-Cola denied all the allegations.
Plaintiffs said bottlers in Japan were forced to buy extra syrup in an effort to inflate sales – called channel stuffing – so that Coca-Cola could post higher income and therefore artificially boost its share price.
The investors took action against the company eight years ago when it announced a US$550-million write down.
Coca-Cola was reported as saying: "We maintain these allegations are without merit and no admittance of wrongdoing is a part of this settlement.”