Shareholders can sue McDonald's ex-executive in landmark ruling,Shareholders can sue McDonald Corp's former global chief people officer for the damage they claim he caused to the restaurant chain by allegedly allowing a culture of sexual harassment to flourish, according to a groundbreaking legal ruling. The decision marks the first time the influential Delaware Court of Chancery has recognized that corporate officers owe the company a legal duty of oversight, which has traditionally been an obligation solely of directors. The decision by Vice Chancellor Travis Laster allows McDonald's shareholders to proceed to trial to try to prove that David Fairhurst, global chief people officer from 2015 to 2019, breached his oversight duties by allegedly acting in bad faith and ignoring signs of a toxic culture.
Shareholders can sue McDonald’s ex-executive in landmark ruling
Shareholders can sue McDonald Corp's former global chief people officer for the damage they claim he caused to the restaurant chain by allegedly allowing a culture of sexual harassment to flourish, according to a groundbreaking legal ruling. The decision marks the first time the influential Delaware Court of Chancery has recognized that corporate officers owe the company a legal duty of oversight, which has traditionally been an obligation solely of directors. The decision by Vice Chancellor Travis Laster allows McDonald's shareholders to proceed to trial to try to prove that David Fairhurst, global chief people officer from 2015 to 2019, breached his oversight duties by allegedly acting in bad faith and ignoring signs of a toxic culture.
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