Beverage Giant Coca-Cola Settles Class Action Lawsuit For $137.5 Million U.S.

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In a class action lawsuit by shareholders against the leader in soft drinks, energy drinks, water and other beverages claiming that they "misrepresented or omitted information in public statements, causing the company's stock price to be inflated", a settlement agreement was reached.

The Star Tribune reports:

The Atlanta-based company did not admit any wrongdoing in settling the suit filed in U.S. District Court in Atlanta, according to the agreement dated June 26 and entered July 3.
The complaint by the institutional investors alleged that certain material facts concerning Coca-Cola and the condition of its business and financial results were misrepresented and omitted from various public statements purportedly made by the defendants, causing the price of Coke stock to be inflated artificially.
The agreement says that Coca-Cola and the other defendants, who include several former top executives of the company, continue to deny all substantive allegations of wrongdoing. The defendants believe they would ultimately prevail, but have considered the risk and expense of going forward and, therefore, decided to settle, court records show.

Investors believed they had lost billions of dollars due to fraud. They also claimed that Japanese bottlers were "forced to take excess syrup to boost sales."

In a statement issued by Coca-Cola Co.:

"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."

Affected shareholders in the suit purchased stock during a five month time period between October of 1999 and March of 2000. A settlement fairness hearing has been scheduled for later this year.

Makes one wonder if the cost of a 16-oz. product will rise in light of the settlement.