Price to PepsiCo for Not Being in Court: $1.26 Billion

[WriteDown]

Source: Yahoo

What's the cost of not showing up to court? For PepsiCo Inc., it's a $1.26 billion default judgment. A Wisconsin state court socked the company with the monster award in a case alleging that PepsiCo stole the idea to bottle and sell purified water from two Wisconsin men.

Now the company is scrambling to salvage the situation. The damages award was handed down on Sept. 30. PepsiCo filed motions to vacate the order and dismiss the claims on Oct. 13, saying it wasn't even aware of the lawsuit until Oct. 6.

The litigation began in April when Charles Joyce and James Voigt sued the soft drink maker and two of its distributors, alleging they had misappropriated trade secrets from confidential discussions the plaintiffs had with the distributors in 1981 about selling purified water. The information was illicitly passed to PepsiCo, which used it to develop and sell Aquafina bottled water, the plaintiffs allege in the case filed in the Circuit Court of Jefferson County before Judge Jacqueline Erwin.

In court documents, PepsiCo argues it was improperly served with the Wisconsin lawsuit in North Carolina, but also asks the court to excuse the corporate bureaucracy that buried a legal document for weeks. While plaintiffs say they served the lawsuit in June on PepsiCo's registered agent in North Carolina, where the company is incorporated, PepsiCo says its law department at the company's Purchase, N.Y.-based headquarters was not notified until September.

"The bottom line is there was a defect in the process for us, but also for" the plaintiffs, said PepsiCo spokesman Joe Jacuzzi, who called the case "highly dubious." ....

Read more: http://finance.yahoo.com/news/Price-to-PepsiCo-for-Not-law-3214509113.html?x=0&.v=1

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Somehow I'm doubtful she'll keep her job.

[Hoopla Phil]

1. Um, Oops?

[carlyhippy]

2. I've always wondered if Joan Crawford's kids ever got and holdings in Pepsi

Joan was married to Alfred Steele..