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Sarbanes-Oxley News & Developments
Coke Under The MicroscopeThe No.1 soft drink company is under fire following allegations of fraud from a former employee.
> > The SEC has requested documents as part of an informal inquiry into allegations of accounting fraud and marketing deception. Revelations surfaced following an independent investigation into former Coke employee Matthew Whitleys claims of massive wrongdoing in the company food service unit, which supplies restaurants and fast food chains. The soft drink giant, Coca-Cola, fired Whitley in March and has described him as a disgrunted former employee.
Coke confirmed one accusation when it admitted discipline was made to a number of employees who improperly influenced a test of a frozen Coke drink during a Burger King-related promotion. The ethical gaffe, prompted a public rebuke from Burger King and a quick apology from Coke.
Currently the SEC is looking into the matter and given the fact that corporate malfeasance has been at the top of the radar screen the last year, Coke needs to soothe their investors anxiety that this could be systemic.
Source: CNN Money article
Published:2003-06-18
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