Campbell Soup Co., Camden, NJ, reached a $35-million settlement of a class-action suit that alleged the soup maker exaggerated sales by “channel stuffing,” i.e., shipping excess inventory to retailers. The suit charged Campbell with misrepresenting its sales in the late 1990s in order to inflate earnings, per the Philadelphia Inquirer. The class-action suit consolidated 10 suits charging Campbell with securities fraud, all filed after a January 1999 announcement that Campbell would stop its practice of end-of-quarter promotions with grocers. Campbell denied any wrongdoing; its insurance will cover the settlement, per the Inquirer.
Meanwhile, Campbell’s shipments of condensed soup fell three percent and ready-to-serve soups rose four percent for the second quarter (ended Jan. 26). Campbell’s total net sales rose six percent to $1.9 billion.
Network
