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The Coca-Cola Company Violated Federal Securities Laws |
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A class action has been filed against The Coca-Cola Company (NYSE:CCE), certain of its officers and directors by stockholders who purchased the company's common stock between January 30, 2003 and September 15, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
According to a press release dated May 9, 2005, the complaint charges Coke and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Coke manufactures, distributes and markets non-alcoholic beverage concentrates and syrups, including fountain syrups, throughout the world. Specifically, the complaint alleges that during the Class Period, defendants made false and misleading statements regarding Coke's business and prospects. The true facts, which were know to defendants but concealed from the investing public, were as follows: (i) Coke's business strategy was flawed and its business model was not working; (ii) Coke's relationships with its key bottlers were impaired and harming Coke's economic performance; and (iii) as a result of the above, Coke's earnings going forward would be diminished. The complaint further alleges that on or around September 15, 2004, Coke revealed that its second half 2004 financial results would be below forecasted levels. Coke's stock declined on this news.
If you bought The Coca-Cola Company securities between January 30, 2003 and September 15, 2004, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.
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