MCDONALD’S, SIMON IN SETTLEMENT TALKS?
McDonald’s Corp., Oak Brook, IL, is reportedly negotiating to settle parts of the lawsuit it filed against agency Simon Marketing in the aftermath of last summer’s gamepiece scandal (December PROMO).
The Associated Press last week quoted Simon attorney Ralph Shapiro (a partner with O’Melveny & Myers, Los Angeles) saying that the two sides are negotiating on some aspects of the case. McDonald’s reportedly told franchisees that it had ended talks with Simon and would go ahead with the suit, which seeks as much as $105 million. Simon filed its own suit against McDonald’s charging fraud and breach of contract (among other allegations) and seeking $1.9 billion in damages. No court date is set.
“It is inappropriate to discuss ongoing litigation. However, we remain committed to doing all we can to protect our customers, our owner/operators, and our brand,” says McDonald’s spokesperson Walt Riker. “That’s what we said when the U.S. Department of Justice first announced its case six months ago, and that’s what we continue to say today.”
The FBI has arrested 51 suspects in the embezzlement scam that prompted McD to fire Simon, touching off massive losses and layoffs at the agency.
In separate McDonald’s news, Alan Feldman resigned as president-chief operating officer of the Americas and was replaced by Jim Skinner, who had been president-coo of the Europe, Asia/Pacific, and Middle East operating divisions.
