Friday, July 11, 2003 | 9:47 a.m.
ATLANTA -- Coca-Cola Co., the world's largest soft-drink maker, today said federal prosecutors are investigating a former executive's charges that it inflated sales and profits with improper accounting.
The U.S. Attorney's Office for the Northern District of Georgia has started a probe into allegations by Matthew Whitley, former director of finance for the fountain division, the Atlanta-based company said in a statement. The review follows Coca-Cola's disclosure last month that the Securities and Exchange Commission started an inquiry.
Whitley, in two lawsuits claiming he was wrongfully fired, alleges the fountain division engaged in schemes to inflate sales and gross profits by $750 million a year and to conceal failures with new products. Coca-Cola acknowledged last month that employees rigged a test of "Frozen Coke" at Burger King Corp. three years ago, while disputing the other allegations.
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