McDonald’s Corp (NYSE:MCD) is suing its former chief executive, alleging that he lied to the board of the fast food giant about the extent of his relationships with employees.
Steve Easterbrook was terminated by the company in November last year after the board concluded that he had violated company policy by engaging in a relationship with one of its employees.
The termination entitled Easterbrook to a severance package that was negotiated with the corporation, however, in a court filing on Monday McDonald’s said it has uncovered new evidence that Easterbrook had not been entirely honest with its investigators about his relationships with multiple employees at the firm.
As a result, the company said it would not have signed the severance package if it had known about the recently uncovered factors, and as such it was bringing legal action to recover the compensation and benefits that Easterbrook received following his negotiated termination.
McDonald’s shares were down 0.8% at US$203 in mid-morning trading in New York on Monday.