McDonald's to pay $33.5 million to a black owner for racial discrimination

McDonald's will pay $33.5 million to a former baseball player who owns many restaurants to settle a lawsuit he filed against the firm, accusing it of racial discrimination. The settlement will bring the dispute to a close.

During the time Herb Washington owned more than a dozen restaurants in Ohio and Pennsylvania, he filed a lawsuit against the company, alleging that the company has treated white owners more favourably and denied him the opportunity to purchase restaurants in more affluent communities.

In a statement released Thursday, McDonald's stated that the sum it was paying Washington was "no more than what we believe to be a reasonable price for the value of the restaurants," according to Cleveland.com.

Despite the fact that the company was confident in the strength of its case, the company stated that "this resolution aligns with McDonald's values and enables us to continue focusing on our commitments to the communities that we serve." The company also stated that "Discrimination has no place at McDonald's."

According to the case, which was filed in United States District Court in Youngstown, Ohio, McDonald's attempted to drive Washington toward businesses in poorer neighbourhoods and that "Black owners average approximately $700,000 less in yearly sales per store than white owners."

For comment, the news source reached out to attorneys for the United States of America in Cleveland and New Orleans.

In a statement released last week, the firm said it would spend $250 million over five years to recruit and support franchise owners from minority groups, according to the news site.

In September 2020, more than 50 Black former franchise owners filed a lawsuit against the firm, alleging the same things.

According to the lawsuit, Black business owners were offered the opportunity to purchase establishments in low-income neighbourhoods with greater security and insurance expenses, but were refused benefits such as rent assistance during renovations that they claimed were provided to white business owners.

Washington was a former Michigan State University track star who went on to play baseball for the Oakland Athletics in the mid-1970s, appearing in portions of two seasons for them.