• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott, Melinda French Gates, and Lauren Sánchez Bezos are rewriting the rules of billionaire giving—one quietly, one strategically, one very publicly

2

Summer camps remain a battleground over what it means to be American

3

Current price of oil as of July 13, 2026

1

MacKenzie Scott, Melinda French Gates, and Lauren Sánchez Bezos are rewriting the rules of billionaire giving—one quietly, one strategically, one very publicly

2

Summer camps remain a battleground over what it means to be American

3

Current price of oil as of July 13, 2026
MPWMcDonald's

McDonald’s takes on accusations of ‘sexual harassment problem’ with lawsuit against former CEO

By
Beth Kowitt
Beth Kowitt
Down Arrow Button Icon
By
Beth Kowitt
Beth Kowitt
Down Arrow Button Icon
August 12, 2020, 11:17 AM ET
Former McDonald's CEO Steve Easterbrook in 2018. The company filed a lawsuit against him on Monday.
Former McDonald's CEO Steve Easterbrook in 2018. The company filed a lawsuit against him on Monday.Scott Olson—Getty Images
Add Fortune on Google for similar content.

On this story there would be no Friday afternoon news dump—the preferred modus operandi of companies trying to hide the likes of bad earnings or legal proceedings.

Instead, McDonald’s filed its lawsuit against former CEO Steve Easterbrook first thing on Monday morning. Those fishing around for the complaint, filed in Delaware state court, did not even have to look very hard: McDonald’s included it as part of its filing with the SEC. 

The suit alleges that Easterbrook, who was fired for sexting with a subordinate, did far more than that. The complaint claims that “recently identified evidence shows that Easterbrook had physical sexual relationships with three McDonald’s employees in the year before his termination; that he approved an extraordinary stock grant, worth hundreds of thousands of dollars, for one of those employees in the midst of their sexual relationship; and that he was knowingly untruthful with McDonald’s investigators in 2019.”

With these alleged new revelations, McDonald’s is now arguing that it had cause to fire Easterbrook and in turn wants him to repay his severance, which the New York Times has reported is valued at more than $40 million. 

It’s highly unusual for a company to opt for such a public airing of its dirty laundry. And there’s plenty of it here. The suit alleges that newly discovered evidence “consisted of dozens of nude, partially nude, or sexually explicit photographs and videos of various women, including photographs of these Company employees, that Easterbrook had sent as attachments to messages from his Company email account to his personal email account.” The complaint also claims that Easterbrook deleted this evidence from his phone “with the intention of concealing their existence.” A call by Fortune to Easterbrook’s lawyer was not returned.

Why would McDonald’s want to shine a spotlight on the alleged malfeasance of its former CEO? As longtime industry watcher Jonathan Maze, editor-in-chief of Restaurant Business Magazine, tweeted, “Point is: McDonald’s likely sees this lawsuit as good press and not bad.”

To be sure, McDonald’s has received plenty of bad press in recent years related to the working environment in its stores, with numerous lawsuits accusing the company of failing to respond to a culture of sexual harassment.

An article in The Nation from late July, for example, cited a poll conducted by a coalition of U.S. labor unions, with three-quarters of respondents saying they had experienced sexual harassment on the job. Two-thirds said they had experienced multiple forms of harassment. Nearly 30% had been asked to have sex with a coworker, and 12% said they were sexually assaulted or raped. (McDonald’s responded by saying the survey represented less than 0.1% of employees in its U.S. restaurants.)

In April, two McDonald’s store employees filed a $500 million class action lawsuit accusing the company of creating an environment of rampant sexual harassment. The suit is backed by Time’s Up Legal Defense Fund, which pays legal fees for victims of sexual assault and harassment and is not the only one the organization is funding against McDonald’s. 

When Easterbrook was fired last year, it was easier for critics to make the argument that the tone was set from the top. Now with its suit against its former CEO, McDonald’s is effectively distancing itself from Easterbrook and his alleged bad behavior. It’s a chance to show how seriously the company takes the improper conduct of its employees—even those at the highest level.

In addition to making its case against Easterbrook, the complaint filed on Monday spends just as much time stressing the importance of the company’s ethics and values.

For example, the suit says that in 2017 the board “emphasized to management that all employees, including top executives, should undergo the most current anti-harassment training.” The suit claims that management, including Easterbrook, “assured the directors that the senior leadership team was receiving such training and that the Company was implementing enhanced safe and respectful workplace training throughout the organization.”

The complaint also notes that the company revised its anti-harassment policy in 2019 after input from nonprofit organizations, to more clearly inform employees of their rights and more clearly define unacceptable behavior and how to report it. 

Integrity is the message the company is pounding in its internal communications as well. A memo obtained by Fortune that was sent to company employees by chief people officer Heidi Capozzi and an email sent by CEO Chris Kempczinski to the entire McDonald’s system together mentioned “values” 16 times. McDonald’s declined to comment on the record beyond providing the email sent by Kempczinski. 

In a press release in response to Monday’s filing, Amanda Harrington, vice president of communications at Time’s Up Now, put it bluntly, saying, “McDonald’s has a sexual harassment problem, plain and simple.”

But with its lawsuit, the company is attempting to make the case that it’s Easterbrook’s problem, not McDonald’s.

About the Author
By Beth Kowitt
LinkedIn iconTwitter icon
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in MPW

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in MPW

‘Close to as good as it gets’: Jamie Dimon just offered another warning on bubbly markets as Wall Street had a monster quarter
BankingJPMorgan Chase
‘Close to as good as it gets’: Jamie Dimon just offered another warning on bubbly markets as Wall Street had a monster quarter
By Mia OsmonbekovJuly 14, 2026
3 hours ago
e
Arts & EntertainmentSocial Media
American influencers turn Erling Haaland into the World Cup’s breakout brand
By Kaitlyn Huamani and The Associated PressJuly 13, 2026
1 day ago
Taylor Swift paid New York City more than $160,000 to cover the costs tied to her wedding, Mayor Zohran Mamdani confirmed
Arts & EntertainmentTaylor Swift
Taylor Swift paid New York City more than $160,000 to cover the costs tied to her wedding, Mayor Zohran Mamdani confirmed
By The Associated Press, Catherina Gioino, Andrew Dalton and Kimberlee KruesiJuly 10, 2026
4 days ago
Around 2.6 million fewer Americans have affordable healthcare access plan as affordability becomes top issue ahead of midterms
North AmericaAmerican Politics
Around 2.6 million fewer Americans have affordable healthcare access plan as affordability becomes top issue ahead of midterms
By The Associated Press and Ali SwensonJuly 7, 2026
7 days ago
bernie
PoliticsBook Excerpt
Bernie Sanders told me exactly why he had to run. The Democratic Party still isn’t listening
By Tad DevineJuly 7, 2026
7 days ago
Indra Nooyi sitting in a chair behind a red background.
SuccessCareers
Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
By Preston ForeJuly 6, 2026
8 days ago

Most Popular

MacKenzie Scott, Melinda French Gates, and Lauren Sánchez Bezos are rewriting the rules of billionaire giving—one quietly, one strategically, one very publicly
Newsletters
MacKenzie Scott, Melinda French Gates, and Lauren Sánchez Bezos are rewriting the rules of billionaire giving—one quietly, one strategically, one very publicly
By Sydney LakeJuly 14, 2026
5 hours ago
Summer camps remain a battleground over what it means to be American
North America
Summer camps remain a battleground over what it means to be American
By Seth T. Kannarr, Derek H. Alderman and The ConversationJuly 13, 2026
1 day ago
Current price of oil as of July 13, 2026
Personal Finance
Current price of oil as of July 13, 2026
By Joseph HostetlerJuly 13, 2026
2 days ago
The U.S. spent $30 billion to ditch textbooks for laptops and tablets: The result is the first generation less cognitively capable than their parents
Innovation
The U.S. spent $30 billion to ditch textbooks for laptops and tablets: The result is the first generation less cognitively capable than their parents
By Sasha RogelbergJuly 12, 2026
2 days ago
Current price of silver as of Tuesday, July 14, 2026
Personal Finance
Current price of silver as of Tuesday, July 14, 2026
By Joseph HostetlerJuly 14, 2026
12 hours ago
Current price of gold as of July 13, 2026
Personal Finance
Current price of gold as of July 13, 2026
By Danny BakstJuly 13, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.