Lancer Corp. faces multiple suits tied to Coke case

<p>Lancer Corp. was named in two separate lawsuits in the past week, both alleging the maker of drink dispensing equipment issued a number of false and misleading statements to investors.</p><p>The lawsuits seek class-action status covering shareholders who held Lancer stock between October 2000 and February 2004.</p><p>In a press release Monday, Goodkind Labaton Rudoff & Sucharow accused Lancer of creating artificial demand for a fountain dispenser by manipulating the sale of a new machine to Coca-Cola Co.'s commercial customers.</p><p>The suit also alleges Lancer didn't properly disclose information on manufacturing problems that resulted in a high rate of defective products.</p><p>The other purported class-action suit was filed Tuesday by Charles J. Piven P.A. of Baltimore.</p><p>Lancer has faced increasing scrutiny since former Coca-Cola employee Matthew Whitley filed the first of two lawsuits against Coke, alleging that a 2001 contract between Lancer and the soft-drink giant was improper.</p><p>Lancer hasn't traded since KPMG resigned as its independent auditor Feb. 2, withdrawing its audit opinions for 2000, 2001 and 2002. In a letter to the company shortly thereafter, KPMG said Lancer's claim that an internal investigation of the Coca-Cola contract in question found no wrongdoing "constituted one of a series of failures to take timely and appropriate remedial actions and a likely illegal act."</p><p>The San Antonio company subsequently delayed the filing of its quarterly reports for the periods ended June 30 and Sept. 30, noting that its new auditor, BDO Seidman LLP, hasn't had enough time to conduct a proper audit.</p>