08-19-2020
Since allowing fired CEO Steve Easterbrook to leave with severance after allegations of sexual harassment, McDonald’s alleges that it has discovered serious lies that entitle it to a return of monies paid. Easterbrook was fired “without cause” for showing poor judgment and violating the company policy that prohibits managers from having personal relationships with subordinates. McDonald’s initial investigation into the allegations supported Easterbrook’s claims that he was not engaged in a physical relationship. Easterbrook claimed that there had not been any other relationships.
However, just last month, McDonald's received another report about Easterbrook having a sexual relationship with another employee; this time the company found emails with “dozens of nude, partially nude, or sexually explicit photographs and videos of various women.” In addition, the company has claimed that Easterbrook had physical relationships with three other McDonald’s employees; and he had authorized “hundreds of thousands of dollars in an extraordinary stock grant” for one of the employees. McDonald’s has claimed that Easterbrook lied to company investigators about all of it. If Easterbrook had disclosed these actions, the company has asserted it would not have approved his multi-million dollar exit package. McDonald’s has also accused of Easterbrook breaching his fiduciary duty and engaging in deceit. It has filed suit to recover the nearly $42 million Easterbrook received as a severance and compensation package.