McDonald’s settles lawsuit with ex-CEO Easterbrook over alleged lies about affairs -Breaking
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© Reuters. FILE PHOTO – The McDonald’s logo can be seen at McDonald’s New York on October 22, 2019. REUTERS/Shannon Stapleton/File Photo(Reuters: McDonald’s Corp. (NYSE) announced Thursday that they had settled with Steve Easterbrook, former chief executive officer. This settlement was in response to a lawsuit alleging Easterbrook lied or covered up his sexual relationship with employees.
Easterbrook received equity awards in 2019 and more than $105 million in cash as part of the settlement. McDonald’s also said that it was a statement.
In August 2020, McDonald’s sued Easterbrook, nine months after a severance agreement. They claimed that he had never given directors an accurate picture of the relationships he has with his employees.
According to company, Easterbrook only had a non-physical relationship with one employee when it fired him. However, an anonymous tip by Easterbrook after his dismissal led to the discovery that dozens of explicit sexually explicit photographs of women were sent from Easterbrook’s personal account to his email.
Easterbrook responded to the lawsuit by claiming that McDonald’s held information on his personal relationships in its computers when it decided his severance package.
McDonald’s CEO Enrique Hernandez Jr stated that “Today’s resolution prevents a prolonged court process” and moved them beyond a section of our past. This message was sent out to employees by Reuters.
McDonald’s announced that they would not dismiss their action against Easterbrook.
As CEO of McDonald’s, my actions as such were inconsistent with the McDonald’s core values. I also failed to fulfill some of my duties as a leader. I apologize to my former co-workers, the Board, and the company’s franchisees and suppliers for doing so,” Easterbrook said in the same news statement provided by McDonald’s.
McDonald’s announced in April that new training would be required at all its restaurants to counter harassment and discrimination. The company was facing several lawsuits alleging that McDonald’s sexually harassed employees of corporate-owned outlets.
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