Toronto, Ontario: (Oct-04-07) A class action lawsuit was brought against McDonald's Restaurants of Canada Limited, McDonald's Corporation, and Simon Marketing Inc., alleging the high level prizes in a number of McDonald's promotional contests that ran in Canada between January 1, 1995 and December 31, 2001 were embezzled by an employee of Simon Marketing Inc. and his co-conspirators. The suit further alleged that the defendants were negligent in supervising the contests, they were unjustly enriched, and that the defendants were in breach of federal and provincial statutes. Sources stated that though the allegations weren't proven in court, the defendants agreed to a settlement to end the class action.
As part of the settlement reached with Simon Marketing Inc., the company will pay a lump sum of CDN $650,000, which will be paid in equal amounts to The Canadian Association of Food Banks and to Ronald McDonald House Charities® of Canada, after deduction of legal fees and other related costs. The settlement would include a term that limits the damages that the class can recover from McDonald's. Further, the terms of the settlement with McDonald's stated that McDonald's will make an additional prize of CDN $1 million, payable in 20 annual installments of CDN $50,000. The money is available to be won in Canada in a promotional contest to be held no later than December 31, 2009. If the settlement prize is, for any reason, not claimed and awarded in the contest, the prize will be awarded to Ronald McDonald House Charities® of Canada. [MARKET WIRE: MCDONALDS PRIZES]