Class action shareholder suit filed against Coca-Cola
May 09, 2005
by FoodBusinessNews.net Staff
SAN DIEGO — A class action lawsuit on behalf of shareholders was filed today against The Coca-Cola Company alleging certain company officials made false and misleading statements about the company’s business and prospects.
The suit was filed in U.S. District Court for the Northern District of Georgia on behalf of purchasers of Coca-Cola common stock during the period between Jan. 30, 2003 and Sept. 15, 2004, according to Lerach Coughlin Stoia Geller Rudman & Robbins L.L.P., the firm representing the plaintiffs.
The complaint charges Coke and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the complaint alleges the defendants concealed from the investing public that Coca-Cola’s business strategy was flawed and its business model was not working; that Coca-Cola’s relationships with its key bottlers were impaired and harming the company’s economic performance; and that as a result, Coca-Cola’s earnings going forward would be diminished.
The suit states that on Sept. 15, 2004, the company indicated that its second half 2004 financial results would be below forecasted levels and that the company’s stock declined on this news.
Plaintiff seeks to recover damages on behalf of all purchasers of Coke common stock during the class period.