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McDonald's to pay Black store owner $33.5M to end bias suit

Posted at 9:41 PM, Dec 17, 2021

CLEVELAND (AP) — McDonald's will pay $33.5 million to a former baseball player who owns multiple franchises to end a lawsuit he brought against the company accusing it of racial discrimination.

Herb Washington, who's Black, owned more than a dozen restaurants in Ohio and Pennsylvania when he filed a lawsuit in February saying the company has treated white owners more favorably and denied him the opportunity to buy stores in more affluent communities. reports McDonald's said in a statement Thursday that the amount it was paying Washington for 13 franchises was "no more" than the fair value of the franchises he owned.

Washington also agreed to no longer be a franchisee as part of the settlement.

In his lawsuit, Washington alleged that McDonald's steered him to place his stores in poorer areas, the Associated Press reported.