The Securities and Exchange Commission formally opened its investigation last Wednesday of Coca-Cola over allegations raised by a former employee that the company tampered with a Burger King promotion. The upgraded investigation allows the SEC to issue subpoenas and interview company officials.

The informal investigation, launched in June, stems from allegations filed last year in a $44 million lawsuit by Matthew Whitley, a former Coke finance manager. Last October the company settled with Whitley, agreeing to pay him $540,000.

In June, the soft drink giant admitted that it padded the test results of a Burger King promotion in Virginia in 2000. According to the lawsuit, after a three-week test of frozen beverages offered with Burger King value meals went poorly, members of Coca-Cola’s fountain division hired a man for $10,000 to take hundreds of children to Burger King to buy the meals.

In August, Coca-Cola said it would pay up to $21.1 million to Burger King to help ease the dispute.

Whitley’s suit accused Coke of hiding the failure of big projects like iFountain, Coke’s high tech beverage dispenser. An investigation has also been opened into the manufacturer of the equipment, Lancer, who Whitley accused of conspiring with Coke.

Coke said it would cooperate fully with the investigation.

The Securities and Exchange Commission formally opened its investigation last Wednesday of Coca-Cola over allegations raised by a former employee that the company tampered with a Burger King promotion. The upgraded investigation allows the SEC to issue subpoenas and interview company officials.

The informal investigation, launched in June, stems from allegations filed last year in a $44 million lawsuit by Matthew Whitley, a former Coke finance manager. Last October the company settled with Whitley, agreeing to pay him $540,000.

In June, the soft drink giant admitted that it padded the test results of a Burger King promotion in Virginia in 2000. According to the lawsuit, after a three-week test of frozen beverages offered with Burger King value meals went poorly, members of Coca-Cola’s fountain division hired a man for $10,000 to take hundreds of children to Burger King to buy the meals.

In August, Coca-Cola said it would pay up to $21.1 million to Burger King to help ease the dispute.

Whitley’s suit accused Coke of hiding the failure of big projects like iFountain, Coke’s high tech beverage dispenser. An investigation has also been opened into the manufacturer of the equipment, Lancer, who Whitley accused of conspiring with Coke.

Coke said it would cooperate fully with the investigation.