Coke agrees to settle discrimination lawsuit; second suit filed

ATLANTA - The Coca-Cola Co. agreed Wednesday to settle a racial discrimination lawsuit it has battled for more than a year, just as a new $1.5 billion suit reportedly was filed on behalf of four other former Coke employees.

The amount of the monetary settlement was not immediately disclosed, and other details remained to be worked out.

A lawyer close to the negotiations said the settlement could cover as many as 2,000 Coke employees who were part of a potential class the plaintiffs had sought to include in the suit.

Meanwhile, a separate lawsuit was filed on behalf of four black former Coke employees not connected to the original race-bias suit, alleging nine counts of discrimination, The Wall Street Journal reported on its Web site Wednesday.

That suit was filed in Fulton County State Court by Willie Gary, a personal injury lawyer, and Johnnie Cochran.

The female plaintiffs in the latest suit charge the company with negligent hiring practices, intentional infliction of emotional distress, and a hostile environment.

A Coke spokesman declined to comment for the report.

U.S. District Judge Richard Story signed an order Wednesday delaying the first lawsuit until Oct. 30, allowing both sides to conclude details of the settlement.

Coke chairman and chief executive Doug Daft said in a memo to employees Wednesday the agreement ''will result in a meaningful and constructive resolution that both parties can embrace and serves the vital interests of all concerned.''

Company spokesman Ben Deutsch said the company would have no additional comment.

That suit was filed in April 1999 by eight current and former Coke employees who accused the beverage giant of denying them raises, promotions and fair performance reviews because of their race.

The plaintiffs are seeking monetary damages and a court order preventing the company from engaging in the alleged discriminatory practices.

Plaintiffs' attorney Cyrus Mehri, who sued Texaco on behalf of black employees and won a $176 million settlement four years ago, declined to discuss the settlement, citing the judge's confidentiality order.

Story's order said the judge was advised by the lawyers that the tentative settlement would speed relief to the employees ''far faster than what realistically can be accomplished through litigation.''

Donald Ross, a partner in the Washington law firm representing the Coke workers, said negotiators had agreed about the amount of the settlement, but were deciding how it will be allocated. He declined to give details.

Daft and other top Coke officials have said the world's largest soft-drink maker does not discriminate and is trying to improve the diversity of its ranks, with several new programs begun since Daft took over in January.

Last month, Coke said it would spend $1 billion over the next five years to boost opportunities for minorities and women,