News Article

Judge OKs Coke Bias Settlement;$192.5 Million Deal Sets New Diversity Goals

The Atlanta Journal - Constitution

Published: May 30, 2001

After an all-day hearing Tuesday, U.S. District Judge Richard Story said he will approve a $192.5 million agreement to settle the class-action racial discrimination lawsuit against Coca-Cola.

Calling the settlement "fair" and "historic," Story told a nearly packed courtroom that "it is time to move forward" after more than two years of contentious litigation.

The settlement, arrived at with the help of a court-ordered mediator, provides an estimated average of $38,000 apiece to 2,200 current and former African-American employees. The lawsuit claimed the company discriminated against them in pay, promotions and performance evaluations.

The agreement establishes several policies and procedures to improve Coke's diversity efforts. An independent task force will be responsible for monitoring the company's progress and making recommendations that are enforceable by the court.

Coke's board of directors will be specifically responsible for ensuring that the company stays on track in terms of the settlement and meeting its diversity goals.

The judge conceded that some class members, who may have been discriminated against when seeking promotions, may not get all they could be entitled to.

But, Story said, the agreement has a "unique aspect" that "screams fairness. " It allows class members to accept part of the settlement while taking their promotion cases to a federal magistrate to try to win more money than the settlement provides.

If there is no appeal, Coke will send a notice to each class member detailing the specific individual settlement amounts within 40 days of Story's written order. Payments would follow shortly thereafter.

For more information or the full story, contact Mehri & Skalet, PLLC.