McDonald's settles lawsuit with Black franchise owner

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McDonald's settles lawsuit with Black franchise owner
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McDonald's has settled a lawsuit filed by a Black franchise owner that alleged the company steered him toward less profitable restaurants in lower-income, predominantly Black neighborhoods because of his race.

Retired Major League Baseball player Herbert Washington filed the civil suit in Ohio in February, as CNN reported at the time.Washington's allegations were similar to the complaints made by a group of 52 former Black franchise operators, who sued the company over alleged racial discrimination last year.

McDonald's said in a statement sent to CNN that in agreement to exit the McDonald's System and dismiss his suit, the company agreed to purchase the 13 restaurants Washington owned for $33.5 million. They said in the statement that the money is"no more than what we deem a fair price for the value of the restaurants."Read MoreThe McDonald's statement also said the court did not find any laws were violated by the company.

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