McDonald’s announced Monday that it would sue to recover the severance and stock options that it granted to terminated CEO Steve Easterbrook in 2019. At that time it concluded that he exercised bad judgement only in a relationship with an employee. Evidence later was uncovered that proved he lied and destroyed evidence of more sexual relationships and a large, six figure stock grant to one of the employees involved. The impact of the legal action on the company reputation especially in these difficult COVID times going forward may be swift and severe. “What is meaningful to us is that McDonald’s corporate will be diverted by the very possible fierce legal battle to come. It also has a negative effect on corporate staff recruitment of certain high demand expertise individuals that McDonald’s needs, said John Gordon, Pacific Management Consulting Group and DDIFO’s restaurant analyst.