Reuters
Published Jun 09, 2021 01:17PM ET
By Jonathan Stempel
(Reuters) - A federal judge has dismissed a lawsuit accusing McDonald's Corp (NYSE:MCD) of racial discrimination for steering Black franchise owners to underperforming stores.
In a decision on Tuesday, U.S. District Judge Harry Leinenweber said the plaintiffs did not show that McDonald's executives or managers treated Black store owners differently from non-Black owners, or when this might have occurred.
"The court does not mean to imply that McDonald's operations over the years have not been tainted by the brush of racism," but historical discrimination did not justify the lawsuit, the Chicago-based judge wrote.
James and Darrell Byrd, brothers with four McDonald's restaurants in Tennessee, accused the company of placing Black franchisees in economically undesirable inner-city locations with high security and insurance costs and below-average sales.
They also said the Chicago-based fast-food chain denied Black owners the same opportunities for growth and financial assistance that it offered white owners.
Leinenweber said the Byrds could amend their complaint, but dismissed their steering claims for good because the statute of limitations had run out.
The Byrds' lawyer Jim Ferraro said on Wednesday they will amend their complaint.
He also said McDonald's has lowered rents for many Black store owners since the lawsuit was filed in October.
McDonald's did not immediately respond on Wednesday to requests for comment. It has denied treating Black owners differently from other owners, and has repeatedly pledged its commitment to diversity and inclusion.
Ferraro has a similar lawsuit pending in Chicago on behalf of Black former franchisees. The two lawsuits sought damages that together could reach $4 billion.
The case is Byrd et al v McDonald's USA LLC et al, U.S. District Court, Northern District of Illinois, No. 20-06447.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.