Coca-Cola to Post $188 Million Charge to Settle Discrimination Lawsuit
Coca-Cola
(KO) - Get Coca-Cola Company (The) Report
said it will post a charge of $188 million in the fourth quarter because of the settlement of a racial discrimination lawsuit.
Coca-Cola agreed earlier this year to settle the lawsuit, which alleged that the company discriminated against African-American salaried employees in pay, promotions and performance evaluations. The monetary settlement includes cash payments to fund back pay, compensatory damages, a promotional achievement fund, and attorneys' fees. Reports indicated that the company would pay $192.5 million to hundreds of African-American workers.
In addition, the company will implement training, monitoring and mentoring programs, as well as make a $50 million donation to the
TheStreet Recommends
Coca-Cola Foundation
to continue its community support programs.
Shares of Coca-Cola were recently up 0.4%, or 25 cents, to $61.56 in
New York Stock Exchange
trading.
