News Article

Coca-Cola to Settle Racial Bias Lawsuit Workplace: Soft drink giant agrees to pay $192.5 million over allegations it treated blacks unfairly.

The Los Angeles Times

Published: November 17, 2000

In the largest racial discrimination settlement in U.S. history, Coca-Cola Co. agreed Thursday to pay $192.5 million to settle allegations that it routinely discriminated against black employees in pay, promotions and performance evaluations.

The soft drink giant will pay an average of $40,000 to some 2,200 current and former black employees who sued in federal court last year. Coke executives also agreed to a major concession: an outside watchdog group with enforcement powers will review and monitor the firm's employment practices.

Plaintiffs' attorneys called the deal "historic. "

"This settlement sets a new standard for corporate diversity," said Cyrus Mehri, the lead lawyer for the workers. "In short, the 'World of Coke' will be going through a 'World of Change. ' "

The settlement was modeled after a 1996 agreement involving Texaco Inc. , which paid $176 million--previously the largest discrimination award--to end a similar suit by its black employees.

Coke Chairman Douglas Daft called the deal "meaningful, constructive and equitable to all parties. "

"It comes from the belief that we need to lead, not just comply, on such issues," he said in a conference call with reporters. "It will be a process that continues forever. "