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Black Herb Washington filed a lawsuit in February alleging that McDonald’s denied him the opportunity to buy restaurants in richer communities.
McDonald’s will pay $ 33.5 million to a former baseball player with numerous franchises to end the lawsuit he filed against the company on racial discrimination charges.
Herb Washington, which is all black, has more than a dozen restaurants in Ohio and Pennsylvania when it filed a lawsuit in February, saying the company treated white landlords more favorably and denied them the opportunity to buy restaurants in richer communities.
McDonald’s said Thursday that the amount Washington was paying was “no more than what we consider fair value for the value of the restaurants,” Cleveland.com reported.
“While we are confident in the strength of our case, this resolution aligns with McDonald’s values and allows us to continue to focus on our commitments to the communities we serve,” the company said, adding that “Discrimination has no place in McDonald’s.”
A lawsuit filed in the U.S. District Court in Youngstown, Ohio, said McDonald’s wanted to target stores located in poorer Washington neighborhoods and that “black owners sell about $ 700,000 less on average than white owners in each store.”
The newscaster contacted lawyers in Cleveland and New Orleans to ask for comments.
Last week, the company announced it would spend $ 250 million over five years to hire and support franchise owners in minority communities, the news reported.
In September 2020, more than 50 Black franchise owners sued the company on similar charges. The suit said Black owners were denied access to shops in poor areas with higher security and insurance costs and were denied things like rent assistance during renovations, which they said were given to white owners.
Washington is a former Michigan State University track star who played baseball with Oakland Athletic for two seasons in the mid-1970s.
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