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McDonald's settles vegetarian suit
Judge names 24 groups to share $10M award from chain for misleading diners on cooking oil content.
May 20, 2003: 2:36 PM EDT

CHICAGO (CNN) - A Cook County judge Tuesday resolved months of dispute by naming 24 groups to divide a $10 million settlement from McDonald's for using animal fat in its French fries.

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Of the $10 million, the fast-food company agreed to donate $6 million to vegetarian groups, $2 million to Hindu groups, and the remaining money to various Jewish groups to promote the understanding of Kosher products.

"We are pleased that the court has approved the donations and endorsed the process of finding suitable grant recipients and projects," McDonald's said in a statement.

Last year, McDonald's agreed to settle lawsuits after admittedly giving vegetarian consumers inaccurate information about fries, mislabeling French fries and hash browns as vegetarian. The cooking oil used to prepare food included beef flavoring, though it was defined as vegetable oil.

The settlement was intended to compensate those customers who ate the fries cooked in beef-flavored oil during the 1990s, when the burger chain had said it used only pure vegetable oil.

Separately, McDonald's (MCD: down $1.21 to $16.95, Research, Estimates) shares fell sharply in mid-day trading on the New York Stock Exchange as investors feared a new outbreak of spongiform encephalopathy (BSE), known as mad cow disease, in Alberta, Canada, could hurt sales.  Top of page


-- from CNN Producer Katherine Wojtecki




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.