McDonald’s Board Beats Lawsuit Over Toxic Workplace Culture (1)

Current and former McDonald’s Corp. board members escaped investor litigation Wednesday over allegations that they spent years ignoring red flags about the company’s culture of pervasive sexual harassment.

Vice Chancellor J. Travis Laster dismissed shareholder derivative claims accusing the fast food chain’s directors of looking the other way despite years of warning signs. Although the lawsuit vividly portrays a toxic workplace culture, it also shows the board trying to grapple with the problem, he found.

The ruling by Delaware’s Chancery Court follows five weeks after Laster let ...