The former CEO and CFO of Southern Beverage Co., a division of Pepsi have filed a defamation suit in White Plains against the EEOC lawyer who was litigating a sexual harassment case against the company. Allen Drury of the White Plains News Journal has the
story. The EEOC attorney allegeldy told the hometown paper of one of the executives that the CEO and CFO solicited sex from employees. The two executives' suit maintains that claim had never been made by any of the employees involved in the litigation. Pepsi ultimately settled the case for $1.79 million. The EEOC attorney will no doubt urge that the judicial privilege, which extends to statements made in and around litigation, protects his speech. The court's view of how that far the privilege extends outside the actual court room and pleadings, will be a critical question.
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