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McDonald's Says Ex-CEO Easterbrook 'Breached Fiduciary Duties'

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McDonald's Says Ex-CEO Easterbrook 'Breached Fiduciary Duties'

Global fast food giant Mcdonald's Corp (NYSE: MCD) is now accusing former CEO Steve Easterbrook of lying to the company's board when negotiating an exit package as part of his 2019 termination, Business Insider reported.

What Happened: McDonald's fired Easterbrook last November after the executive acknowledged engaging in an inappropriate but consensual relationship with a female employee.

McDonald's investigated Easterbrook's conduct and concluded that Easterbrook "lied," the company told Business Insider in a statement. 

The fast food chain said in a court filing that the ex-CEO "breached his fiduciary duties of candor and loyalty and fraudulently obtained a termination 'without cause.'"

The statement came in a response to a motion by Easterbrook to dismiss the lawsuit McDonald's filed against him. 

Easterbrook Files To Dismiss: Easterbrook's legal team is arguing that McDonald's could have uncovered evidence of his deceit during its investigation and prior to reaching a settlement. 

McDonald's acknowledged in early August that it found "indisputable evidence" that Easterbrook was engaged in improper sexual relationships with multiple employees by storing nude and sexually explicit photos.

But the company is countering this is no reason to dismiss a lawsuit, even if the photos were located on McDonald's servers.

"After discovery, on a full factual record, Easterbrook can attempt to argue that McDonald's should have investigated differently and uncovered his deceit sooner," the filing said. 

Related Links:

Institutional Investor Says McDonald's Lawsuit Against Ex-CEO Shows Failure By Board

Internal McDonald's Investigation Deepens After CEO Firing: Report

Photo courtesy of McDonald's. 

 

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