Fast-food giant McDonald's has settled its lawsuit against former CEO Steve Easterbrook, the restaurant chain announced Thursday, stating that he paid over $105 million and apologized to the company in a settlement over the burger chain's allegations that he lied to cover up sexual relationships with employees.
As part of the settlement, Easterbrook has returned the equity and cash awarded in his severance agreement in 2019, said McDonald's.
McDonald's sued Easterbrook in August 2020, nine months after reaching a severance deal, claiming he never gave directors a complete picture of his relationships with employees.
The company said that when it fired Easterbrook, it only knew of one nonphysical consensual relationship with an employee. But an anonymous tip after his ouster led to the discovery of dozens of sexually explicit photos of women, including three employees, that Easterbrook sent to his email from his company account.
In his response to the lawsuit at the time, Easterbrook had claimed that McDonald's had information about his relationships on its computer systems when it negotiated his severance package.
"Today's resolution avoids a protracted court process and moves us beyond a chapter that belongs in our past," McDonald's Chairperson Enrique Hernandez Jr. said in a message to employees seen by Reuters.
McDonald's said it would dismiss its action against Easterbrook with prejudice.
"During my tenure as CEO, I failed at times to uphold McDonald's values and fulfill certain of my responsibilities as a leader of the company. I apologize to my former coworkers, the Board, and the company's franchisees and suppliers for doing so," Easterbrook said in the same news statement provided by McDonald's.
McDonald's said in April it would require new training at its restaurants to fight harassment and discrimination after facing lawsuits accusing it of subjecting female employees at corporate-owned outlets to widespread sexual harassment.
When granted in 2019, Easterbrook's severance was valued at $42 million by Equilar, which tracks executive compensation.
Since then, the stock has climbed 37% to more than $264 per share.