Coca-Cola To Pay $192.5M to Settle Racial Discrimination Suit
A racial discrimination lawsuit brought by black employees of Coca-Cola Co. has ended in settlement as Coke agreed yesterday to pay $192.5 million. This figure includes $114 million in cash, $43.5 million to adjust salaries, $36 million to supervise the company's employment practices, and $20 million to pay lawyers' fees.
The suit, which was filed in April 1999, claimed that Coke discriminated against black salaried employees in pay, promotions and evaluations. The settlement applies to black employees who worked for Coke between April 22, 1995, and June 14, 2000. Details will be sent to about 2,000 class members in December.
Coke has denied the claims but has agreed to undergo a review of its employment practices. Following the announcement of the settlement, shares of Coca-Cola fell six cents to $61.44 on the New York Stock Exchange.
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