Investing.com — McDonald’s (NYSE:MCD) wants its money back. The burger company is suing former Chief Executive Officer Stephen Easterbrook for all compensation and severance benefits awarded upon his termination in November regarding “poor judgement involving a consensual relationship with an employee.”
Further investigation into Easterbrook revealed that he lied to the company and the board and destroyed information regarding inappropriate personal behavior and had been involved in sexual relationships with three additional employees prior to his termination, all in violation of company policy, McDonald’s said in a filing with the Securities and Exchange Commission.
Shares are little changed on Monday.
Had the board been aware of this information prior to his dismissal, it would not have approved the terms of separation that gave Easterbrook a handsome farewell package. The company said it has taken immediate action to prevent Easterbrook from exercising any stock options or selling any stock issuable in respect of outstanding equity awards. The lawsuit was filed in Delaware’s Court of Chancery.
McDonald’s complaint alleges that Easterbrook breached his fiduciary duties as an officer and director of the company and committed fraud in the inducement, and seeks, among other things, compensatory damages for all the amounts paid to Easterbrook under the separation agreement and other costs and expenses incurred by the company by virtue of his misconduct.