Paliare Roland Rosenberg Rothstein LLP

October 04, 2007 12:25 ET

Class Action Settlement Approved Against McDonald's Restaurants of Canada Limited, McDonald's Corporation and Simon Marketing Inc.

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2007) - Settlements with both McDonald's Restaurants of Canada Limited and McDonald's Corporation (together, "McDonald's"), and Simon Marketing Inc. have received court approval in a class action lawsuit. The action alleged that 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, 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. The allegations were not proven in court, and the defendants have agreed to settle the class action without any admissions of liability.

Under the terms of the settlement with Simon Marketing Inc., Simon Marketing Inc. 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 settlement administration costs. The settlement with Simon Marketing Inc. includes a term that limits the damages that the Class can recover from McDonald's to that amount of the loss suffered by the Class that can be attributed solely to the conduct of McDonald's.

Subject to the terms of the settlement with McDonald's, McDonald's will make an additional prize of CDN $1 million, payable in 20 annual installments of CDN $50,000, 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.

In consideration of these payments, the defendants will be fully and finally released from any liability with respect to the issues raised in the class action. Any person who does not wish to be bound by the terms of the settlements must opt out of the class action by sending a written and signed opt out notice to class counsel at the address below. Any person who opts out of the McDonald's settlement will not qualify to win the settlement prize.

The full terms of the settlements and the decision of the Superior Court of Justice can be accessed at www.mcdonaldscontestclassaction.com.

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