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Herb Washington, a black man, filed a lawsuit in February alleging that McDonald’s denied him the opportunity to buy restaurants in the more affluent areas.
McDonald’s will pay $ 33.5m to a former baseball player with several franchises to settle a lawsuit he filed against the company over racial slurs.
Herb Washington, a black man, owned more than a dozen restaurants in Ohio and Pennsylvania when he filed a lawsuit in February alleging that the company treated its clean owners fairly and barred them from buying restaurants in the more affluent areas.
McDonald’s said in a statement Thursday that its “fare in Washington” was “no higher than what we consider to be the cost of a restaurant,” Cleveland.com said.
“While we were confident that our case was strong, the decision was in line with McDonald’s beliefs and helped us continue to focus on our commitment to the communities in which we serve,” the company said, adding that “discrimination has no place in McDonald’s.”
A lawsuit filed in the United States District Court in Youngstown, Ohio stated that McDonald’s wanted to lead Washington to markets in the poorest region and that “black owners were about $ 700,000 on annual sales more than white owners”.
The matter was referred to Washington’s lawyers in Cleveland and New Orleans for comment.
Last week, the company announced it would spend $ 250m over five years signing up and supporting franchise owners from a few regions, the report said.
In September 2020, more than 50 former Black owners sued the company with similar lawsuits. The suit said black owners had been offered the opportunity to buy shops in poor areas with high security and insurance costs and had been denied such things as rent assistance in repairing what he said white owners had been given.
Washington is a former Michigan State University veteran who played baseball for two years with Oakland Athletics in the mid-1970s.
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