- NEW YORK (IANS) -- A U.S.
court has approved a $10 million settlement in a lawsuit by an Indian American
against McDonald's Corporation for misleading customers who don't eat meat
by using beef extracts in its fries.
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- It did not approve the list of organisations submitted
by the fast food giant for receiving the funds.
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- Punjab-born Harish Bharti, the feisty lead counsel in
the case Sharma versus McDonald's, said he was elated with the victory
for consumers.
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- Bharti has filed several cases across the U.S., in California,
Washington state and Illinois, claiming McDonald's used meat additives
to its fries and hash browns long after making a 1990 pledge to cook them
in vegetable oil.
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- McDonald's has admitted to using beef extract, not beef
tallow in fries.
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- "I won on both counts -- I won on the settlement
and at the same time I did not want McDonald's to give the money to its
favourites," the 49-year-old Bharti told IANS.
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- McDonald's had submitted a list of groups it thought
should receive the money. "I opposed the list... I thought it improper
because it included some consultants of McDonald's, and I asked the court
to approve the settlement but not the list. The court could have very well
not agreed to my request. This was a very smart judge."
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- Judge Richard Siebel of the Chicago Circuit Court of
Cooke County in his ruling Wednesday said: "The court finds that the
settlement is fair, reasonable and adequate, and is in the best interests
of the class."
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- The case was heard in Cooke County because McDonald's
has its headquarters there, but it will have national implications.
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- "The court can enforce jurisdiction, because it
is not over today," Bharti said. "The court has to make sure
they comply with the agreement."
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- Bharti has requested the court to appoint a special master
to determine who should receive the funds. That hearing is scheduled for
January 2003.
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- "I am very happy and very proud. McDonald's apology
has already been published. The advisory board will be set up. Disclosure
has been done. My clients and consumers have already got the benefits.
The money is also resolved and all I am trying to say is that nobody who
is eligible should be deprived."
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- Seibel said in his court order regarding the $10 million:
"The court retains the right of final approval of cy pres fund recipients."
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- In documents obtained by IANS, the specific distribution
as approved by the court was laid out by Bharti as follows: "The settlement
amount shall consist of $10 million, to be placed in a cy pres fund for
distribution to charitable and/or other tax-exempt organisations to be
mutually agreed upon by the parties on or before the effective date."
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- It said the funds would be divided "to the extent
practicable" as "60 percent to vegetarian organisations; 20 percent
to Hindu and/or Sikh organisations; 10 percent to children's nutrition
and/or children's hunger relief organisations; and 10 percent to organisations
promoting the understanding of Jewish law, standards and practices with
respect to Kosher foods and dietary practices, and the observance of such
standards by persons of the Jewish religion".
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- Bharti, a Hindu who does not eat meat, said: "Without
an apology, I wouldn't have thought of settling. An apology was more important
to my clients than anything else."
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- He had filed a class-action suit in California in May
2001, soon after the one he filed on behalf of Washington vegetarians.
Suits in Illinois, Texas, New Jersey and Canada followed. The suits alleged
McDonald's deliberately misled its vegetarian customers by using beef tallow
in its fries and hash browns.
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- "I'm very proud of receiving the disclosure,"
Bharti said. "In the long run, it's the best thing for the American
consumer because McDonald's is a leader in the industry, and everybody
else will have to follow."
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- McDonald's published an apology in newspapers earlier
this year, saying: "Mistakes were made in communicating to the public
and customers about the ingredients in our French fries and hash browns.
...Those mistakes included instances in which French fries and hash browns
sold at U.S. restaurants were improperly identified as 'vegetarian'."
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- Bharti, sometimes referred to as the modern-day Robin
Hood, has filed other notable cases included one against Boeing Corporation
alleging Indian Americans have been treated differently in terms of promotions
and pay-scales.
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- In that case, the judge ruled Asian American engineers
could be considered a "class". The case is still on.
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- Earlier this month, Bharti made a $2.2 million settlement
with parking giant Diamond Parking to reimburse collection fees it had
tagged on to parking fees of some 57,000 of its customers who owed the
company, a Seattle Times report said.
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