Atlanta, Oct 08: The Coca-Cola Co has agreed to pay 540,000 dollars to a former finance manager to settle a Whistleblower lawsuit that led to a criminal investigation of fraud allegations at the world's largest beverage maker. Matthew Whitley sued for wrongful termination in state and federal court in May. The suit accused Coke of rigging a marketing test three years ago to inflate the popularity of frozen Coke at burger king restaurants in Virginia.

In a joint statement yesterday, Coke and Whitley said they had settled the disputes. Whitley has agreed to dismiss his complaints against the company and each of the individuals named. The company has agreed to pay him 100,000 dollars, the severance benefits he was to receive from being laid off, about $140,000, and $300,000 for legal fees.

Whitley and Coke said both would continue to cooperate in the federal investigations of the company.

Whitley was laid off in March, a month after he says he sent a memo to company president Steve Heyer detailing allegations of widespread fraud at Coke. His allegations have led to a criminal investigation of Coke by federal prosecutors and an inquiry by the Securities and Exchange Commission. Coke has said Whitley was laid off as part of a restructuring.

Coke has admitted undermining the test, and has said that the employees involved in the test were disciplined.

Bureau Report