McDonald’s will pay $ 33.5 million to a former baseball player who owns multiple franchises to end a lawsuit filed against the company for racism.
Herb Washington, a black man, owned more than 12 restaurants in Ohio and Pennsylvania when he filed a lawsuit in February, and the company favored white owners and restaurants in a wealthier community. Said he refused the opportunity to buy.
McDonald’s said in a statement Thursday that the amount paid to Washington for the 13 franchise was “only considered a fair price for the value of the restaurant,” Cleveland.com reported.
“We are confident in the strength of our proceedings, but this resolution is in line with McDonald’s values and allows us to continue to focus on our commitment to the communities in which we serve. “There is no discrimination in McDonald’s,” the company added.
Washington withdrew the proceedings and agreed that it would no longer be a franchisee as part of the settlement agreement.
In a lawsuit filed in the US District Court in Youngstown, McDonald’s seeks to direct Washington to stores in poorer areas: “Black owners average more annual sales per store than white owners. Is about 700,000 less. “
The press sought comment from lawyers in Washington, Cleveland and New Orleans.
Last week, the company announced that it would spend $ 250 million over five years to recruit and support franchise owners from the minority community, the press reported.
In September 2020, more than 50 former black franchise owners sued the company on similar allegations. In the proceedings, black owners were offered to buy stores in poor areas where security and insurance costs were high, and were denied rent assistance during refurbishment, which they said were given white owners. Said that.
Washington is a former Michigan State University track star who played part of two seasons at Oakland Athletics in the mid-1970s.
McDonald’s to pay Black store owner $33.5M to end bias suit – Los Angeles Sentinel | Los Angeles Sentinel Source link McDonald’s to pay Black store owner $33.5M to end bias suit – Los Angeles Sentinel | Los Angeles Sentinel