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This past weekend, McDonald's fattened the wallets of 15 customers with million-dollar prizes; payouts from an instant-win giveaway in which people could win just by wandering into one of the fast-food restaurants on Friday, Saturday or Sunday. But because of the scandal that sparked the $15 million giveaway, few customers knew that they could become millionaires. So why was McDonald's tossing cash around like
Frisbees in the park? To settle a long running class action lawsuit,
that's why. McDonald's was not implicated in the scheme, which centered on a worker at an outside company that had administered the promotions until then. But within two weeks, McDonald's announced a $10 million Instant Prize Giveaway "to right this wrong," as then-chairman Jack Greenberg said in a press release. But evidently $10 million was not enough to match the scope of the fraud. After all, there were dozens lawyers that needed to make a few million bucks as well. So a second giveaway was put together. But this time around, there was no fanfare or publicity, since the settlement stipulated that McDonald's could not make this giveaway a promotion. So $15 million is to be given away this weekend with
another $2 million is to be spent administering the giveaway. And of
course there's that little matter of paying the lawyers who brought the
lawsuit. Their chunk of the giveaway: $3 million was divided up among the
28 lawyers involved. Return to Class Action Classics page. Or check out our Stupid Lawsuit Collection by clicking here.
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