Quick-service chain officials stand by their complaint, saying the ex-CEO lied and committed fraud
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Former McDonald’s Corp. CEO Steve Easterbrook reportedly denied allegations that he lied about sexual relationships with subordinates, seeking to have a lawsuit thrown out, according to court filings Friday.
Easterbrook was fired from the CEO role in November 2019 initially for demonstrating “poor judgment” involving a consensual relationship with an employee. Last week, however, McDonald’s Corp. sued Easterbrook seeking to recover millions in compensation and severance, citing new evidence that he covered up relationships with other employees, approved stock grants for one of those women and destroyed evidence.
The lawsuit in Delaware Chancery Court alleges that Easterbrook breached his fiduciary duties and committed fraud, lying to his co-workers, the board and investigators.
Easterbrook’s attorneys argued in a motion-to-dismiss filing Friday that the Chicago-based quick-service chain cannot credibly allege breach of contract, so “it improperly seeks to manufacture claims for a breach of fiduciary duty or fraud.”
Calling the lawsuit “meritless” and “misleading,” the attorneys for the former CEO also said the lawsuit should be heard in Illinois, where the company is based. McDonald’s, however, is incorporated in Delaware.
Easterbrook’s separation agreement included a nondisparagement clause, which prevents the former CEO from making public comments about the matter, according to a report by CNBC.
McDonald’s officials in a statement said the company stands by its complaint, “both the factual assertions and the court in which it was filed.”
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