One year after a whistle-blower lawsuit accused Coke of fraud in its relationship with two business partners, federal prosecutors have granted immunity to two employees who will testify about how Coke executives rigged marketing tests in 2000 to induce Burger King to commit its chain to the Frozen Coke product. While Coke has resolved its dispute with Burger King (with a $21 million offer) and its former employee Michael Whitley (for payment of $540,000), the federal probe continues. The U.S. Attorney's Office refused comment, but this article from the Miami Herald said that the immunity, combined with certain grand jury testimony, indicated that prosecutors may be considering criminal charges against the company. For more on the Frozen Coke story -- including allegations that Coke's consultant used a non-profit company to pay kids to buy the product -- check out this blog search.
Posted by franchiselawblog at August 27, 2004 11:13 AM