March 8, 2002
		McDonald's Shells it Out A confidential draft of a proposed settlement offer hasMcDonald's Corp. settling with several vegetarians who sued the chain for concealing its use of beef extract in its French fries. The proposed settlement has McDonald's paying $10 million to charities that promote vegetarianism, and $2.4 for the plaintiffs' attorney's fees. Additionally, they would issue a public apology and form an adviory board to counsel the company on vegetarian issues. The agreement would settle lawsuits in five states that were filed on behalf of any vegetarian who ate McDonald's fries after 1990 in the belief that they conatined no animal products. That was the year McDonald's began promoting its fries as being cooked in "100 percent vegetable oil" in the place of its former combination of beef tallow and vegetable oil. The plaintiffs contend that they were misled into believing McDonald's fries were vegetarian because of the marketing of the switch to vegetable oil, not knowing that they continued to add beef tallow to its fries for flavoring. According to the settlement draft, McDonald's does not admit to any wrongdoing as part of the agreement. While McDonald's admitted that they did not fully disclose the use of beef extract, they contend that they never made any claims about the fries being suitable for vegetarians. After disclosure, suits were filed in Illinois, California, Texas and New Jersey, following the initial complain last May in Washington state. The terms call for McDonald's to donate $6 million to vegetarian organizations, $2 million to Hindu or Sikh groups, $1 million to proote children's hunger relief and another $1 million to support kosher dietary practices. They will also publish an apology in at least six publications, including Veggie Life, Hinduism Today and the India Tribune. McDonald's spokesman Walt Riker said that the company "has been working in good faith to resolve this matter. It was purely unintentional, and we have been working to address this issue in a positive way." Plaintiff Cherie Travis of Downers Grove, Il, was not pleased with the offer, though. "Given how long the deception was, $10 million is a pittance," said Travis. "McDonald's made a lot of money telling people that its fries were vegetarian."