McDonald’s Calls Former CEO ‘Morally Bankrupt’ When He Asked For This
Fast food giant McDonald’s has called out its former CEO Steve Easterbook for asking to dismiss the chain’s lawsuit against him.
McDonald’s has sued Easterbrook to recoup his severance package after saying it discovered that he had sexual relationships with three additional women while at the company.
The company said to CNBC, “His argument that he should not be held responsible for even repeated bad acts is morally bankrupt and fails under the law.”
Easterbrook had asked the Delaware court to dismiss the case filed by McDonald’s. The former McDonald’s executive had said that the company’s lawsuit accusing him of fraud and trying to claw back an estimated $42 million of his compensation was “meritless” and “misleading,” according to the court filing.
“McDonald’s – a sophisticated entity represented by numerous internal and external experts when it entered into the Separation Agreement – is aware that it cannot credibly allege a breach of contract claim,” Easterbrook’s lawyers said in the filings. “Instead, it improperly seeks to manufacture claims for a breach of fiduciary duty or fraud.”
“Easterbrook’s suggestion that, his lies notwithstanding, McDonald’s got a good enough deal by ridding itself of him has no legal merit,” McDonald’s responded in the filing.
The company additionally said in its filing that Easterbrook’s argument boils down to “he cannot be liable because, as a matter of law, he did not hide his misconduct well enough.”
“When McDonald’s investigated, Steve Easterbrook lied. He violated the Company’s policies, disrespected its values, and abused the trust of his co-workers, the Board, our franchisees, and our shareholders,” McDonald’s said in a statement to CNBC. “His argument that he should not be held responsible for even repeated bad acts is morally bankrupt and fails under the law.”
Disclaimer: We have no position in Mcdonald’s Corp. (NYSE: MCD) and have not been compensated for this article.