McDonald’s Advances Effort to Claw Back Millions From Ex-CEO

McDonald’s Corp. can advance its lawsuit seeking to claw back $37 million in severance it paid ex-CEO Stephen J. Easterbrook after he was forced out over four alleged affairs with subordinates, a Delaware Chancery Court judge ruled Tuesday.

Vice Chancellor Joseph R. Slights III let the company move forward with fiduciary breach claims, including allegations that Easterbrook “orchestrated a substantial grant of equity to one of the employees with whom he was having a sexual relationship.”

The judge dismissed the argument that McDonald’s forfeited the right to pursue legal claims against Easterbrook when it agreed to a voluntary separation agreement ...