News Article

Coca-Cola Reaches a Settlement With Some Workers in Bias Suit

The New York Times

Published: June 15, 2000

NEW YORK -- The Coca-Cola Company said yesterday that it had reached a tentative settlement with several black employees who sued the company 14 months ago, contending that they were denied promotions, raises and other opportunities because of the color of their skin.

The settlement, whose details were not disclosed, is intended to cover not just the plaintiffs, but 2,000 black employees who worked at the company over the last decade. The plaintiffs had sought payments as well as policy changes at the company and wanted those extended to all black employees.

The federal judge overseeing the case ordered yesterday that the amount of payments be determined by the end of October with the help of outside experts. A final settlement, which must be approved by the judge, Richard W. Story, might not take effect until early next year.

The original lawsuit, filed in April 1999 by four current and former Coca-Cola employees, rocked a company that had long prided itself on its race relations and its global outlook.

The plaintiffs' lawyers contended last fall that Coke executives had destroyed important hiring and compensation records, and had even purchased a shredder to speed up the process. Coke insisted that no shredder had been purchased and no documents destroyed. A subsequent filing by the plaintiffs included an invoice from Staples showing that a shredder had been ordered for the office of one executive who worked on Coke's defense in the lawsuit.