Former McDonald’s CEO Steve Easterbrook responds to company lawsuit



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Steve Easterbrook, president and CEO of McDonald’s Corp., walks the grounds after a morning session at the Allen & Co. Media and Technology conference in Sun Valley, Idaho, the United States, Wednesday, July 12, 2017.

David Paul Morris | Bloomberg | Getty Images

Former McDonald’s CEO Steve Easterbrook hit back at the fast food giant, saying the company’s lawsuit accusing him of fraud and attempting to recoup around $ 42 million in compensation was “baseless” and ” misleading “, according to a new court file.

McDonald’s sued Easterbrook last week, months after his board fired him for having a relationship with an employee. The lawsuit in Delaware state court alleges Easterbrook committed fraud and lied during the company’s investigation into a relationship he had with an employee. The company said it found three alleged additional relationships with employees that it did not disclose before his dismissal. McDonald’s is seeking to recover the compensation it received as part of its separation agreement.

Easterbrook asked for the lawsuit against him to be dismissed on Friday, saying the equity award agreement imposed litigation in DuPage County, Ill. And that there was wording in the deal. separation preventing the company from canceling it.

Easterbrook also argues that new information cited by McDonald’s to bring its lawsuit – emails that were said to have been deleted from his phone but still available on the company’s server – was available to the company prior to signing off. the separation agreement.

“McDonald’s – a sophisticated entity represented by many internal and external experts when entering into the separation agreement – realizes that it cannot credibly allege a breach of contract claim,” the lawyers said. ‘Easterbrook in the Depots. “Instead, he is unduly seeking to fabricate claims for breach of fiduciary duty or fraud.”

The separation agreement included a no-denigration clause, which renders Easterbrook “essentially incapable of making public comments.”

In McDonald’s lawsuit against Easterbrook, lawsuit alleges Easterbrook approved “an extraordinary stock grant, worth hundreds of thousands of dollars” for one of the employees while they were in a relationship sexual. Easterbrook’s response indicates that the board has reviewed and approved the employee equity award.

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