BusinessLegal News

McDonalds Sues Former CEO Over Alleged Sexual Misconduct with Employees

Story Highlights
  • Knowledge is power
  • The Future Of Possible
  • Hibs and Ross County fans on final
  • Tip of the day: That man again
  • Hibs and Ross County fans on final
  • Spieth in danger of missing cut

(Noted News) McDonalds filed suit against Stephen Easterbrook, its former CEO, alleging sexual misconduct with employees.  The Complaint filed in Delaware Chancery Court, by McDonald’s attorneys, Garrett Mortiz, S. Reiko Rogozen, and Holly E. Newell at Ross Aronstam & Moritz LLP, states McDonalds learned in October 2019 of allegations that its CEO “had engaged in an inappropriate personal relationship with a
McDonald’s employee [and] immediately commissioned an investigation of the allegation. The investigation confirmed that the alleged relationship had occurred and revealed
that it had been a non-physical, consensual relationship involving texting and video calls.”

According to the Complaint, McDonald’s fired Eaterbrook on November 1 after concluding that he “violated Company policy by engaging in an inappropriate relationship with a subordinate [and] that his conduct demonstrated poor judgment that disqualified him form continued service as the CEO.”  A separation agreement was negotiated with Easterbrook where he was terminated “without cause” which reportedly would entitle him to receive substantial severance benefits.

The Complaint alleges that recent “evidence shows Easterbrook had physical sexual relationships with three McDonald’s employees in the year before his termination; that he approved an extraordinary stock grant, worth hundreds of thousands of dollars, for one of those employees in the midst of their sexual relationship; and that he was knowingly untruthful with McDonald’s investigators in 2019.”  The lawsuit alleges that Eaterbrook violated his fudiciary duties, and that had he been honesty with “McDonald’s investigators and not concealed evidence, McDonald’s would have known that it had legal cause to terminate him in 2019 and would not have agreed that his termination was ‘without cause.'”

Show More

Related Articles

Back to top button