McDonald's said that it will pursue legal action against its former CEO, Stephen Easterbrook, accusing him of lying about multiple 'inappropriate relationships' with company employees.
McDonald's said Easterbrook, who stepped down in November of last year following revelations of an improper relationship with a fellow employee, lied to the company and destroyed information regarding "inappropriate personal behavior" during its investigation.
The company also said Easterbrook had been involved in "sexual relationships with three McDonald’s employees in the year before his termination" and approved an extraordinary stock grant, "worth hundreds of thousands of dollars", for one of those employees during their physical relationship
"These actions constitute breaches of Easterbrook’s duties to McDonald’s. Had Easterbrook been candid with McDonald’s investigators and not concealed evidence, McDonald’s would have known that it had legal cause to terminate him in 2019 and would not have agreed that his termination was “without cause”, McDonald's said in an Securities and Exchange Commission filing.
"Accordingly, McDonald’s brings this action to redress the injuries it has suffered by virtue of Easterbrook’s fiduciary breaches and deceit," the company added.
Easterbrook, 52, who led the world's largest restaurant group between 2015 and 2019, stepped down as CEO in late 2019 after admitting he had made a "mistake" in pursing a relationship with a colleague which, while consensual, violated company policy.
His departure was followed by the resignation of David Fairhurst, McDonald's head of human resources, and the appointment of Americas division boss Chris Kepmczinski as the new CEO.
Latest Videos From TheStreet and Jim Cramer:
- Coronavirus Update: Kodak's Loan Is Frozen Pending SEC Probe
- TikTok to Sue Trump Administration? Latest News
- Stocks Falter Even as Job Gains Impress
- Who Has the Power to Delay the Presidential Election?
- Jim Cramer Says 'Get Out' of Kodak Stock
- Should You Give Financial Support to Family Amid the Pandemic?
- Rocket Companies CEO on Going Public, Building a Better Client Experience