10 Times Fast Food Companies Faced Huge Lawsuits

10 Times Fast Food Companies Faced Huge Lawsuits

Matrix link: https://docs.google.com/spreadsheets/d/1GnGuGiD8b0cIEFh8ylrMYxXmJYgbDYPcPXqrUOL3qw4/edit?usp=sharing

Welcome to WatchMojo, and today we’re discussing our picks for the incidents that landed quick serve restaurants in court.

Suggested intro

YouTube: CBC News: The National

Class action lawsuit against Tim Horton’s: https://youtu.be/AmltbymvUfQ?t=92

Weed Whoppers

Burger King

In 2006, New Mexico police officers Mark Landavazo and Henry Gabaldon were on duty when they decided to stop for a bite at a local Burger King. After eating about half of their Whoppers, they noticed something unusual. The meat had been laced with marijuana. The cops used a field test kit to confirm their suspicions, then went to the hospital. The employees responsible were arrested and charged with aggravated battery on an officer, though they got off with just probation. The officers later filed a lawsuit against Burger King, alleging personal injury and negligence.

Sources: https://youtu.be/jiY5D4Enq_Y https://www.heraldtribune.com/story/news/2006/11/07/burger-king-sued-over-pot-burgers/28510415007/

“truTV Presents: World's Dumbest…” (2008-14)

truTV

Video about the incident: https://youtu.be/OIa4GPgr13Q

YouTube: KRQE

One of the cops is mad about the light sentence: https://youtu.be/jiY5D4Enq_Y

Privacy Breach

Wendy’s

Using your fingerprint to clock in and out of work seems like a no-brainer. Employees don’t have to worry about losing a badge or remembering a pin number, and management can be sure no one is cheating the system. But when a company collects biometric data like fingerprints, it has to follow privacy laws. Illinois has particularly strict laws around collecting this type of personal information, and Wendy’s found that out the hard way. Employees who had worked for the company between 2013 and 2023 filed a class action lawsuit alleging that Illinois-based Wendy’s locations had violated the law. The employers had failed to get written consent to collect their prints, among other oversights. Wendy’s settled the suit in 2024 for over $18 million.

Sources: https://www.fastcompany.com/91030897/wendys-class-action-lawsuit-settlement-claim-finger-scan-biometric-data https://topclassactions.com/lawsuit-settlements/closed-settlements/wendys-bipa-18-2m-class-action-lawsuit-settlement/

YouTube: Mashed

Explanation of the lawsuit: https://youtu.be/1PguQiGQifI?t=524

CBS Chicago

Report on Illinois’s strong biometric data privacy law: https://youtu.be/JwrwP7rBkAs

Wage Theft

Five Guys

Companies mistreating employees is nothing new, but in 2023, Five Guys was forced to pay for it. More than 2,000 employees sued the chain back in 2017 for failing to provide them with legally required breaks and forcing them to work off the clock. The lawsuit went on for years because Five Guys kept proposing settlements, and judges kept rejecting them for being too low. Considering how expensive their burgers are, it’s not surprising that they’re stingy with their money. Finally, the fifth settlement offer was accepted, which gave about $900 in compensation to each affected employee. By the way, did you know that wage theft is the most common type of theft in the U.S., by far?

Sources: https://getjusticenow.com/five-guys-class-action-lawsuit/

https://www.tcworkerscenter.org/2018/09/wage-theft-vs-other-forms-of-theft-in-the-u-s/

YouTube: Mashed

Video about the lawsuit: https://youtu.be/mGqCbVx78L0?t=459

YouTube: The Food Theorists

Why Did Five Guys Get SO Expensive?: https://youtu.be/Qb6EW03_3eI?t=31

YouTube: The Young Turks

Wage Theft is extremely common: https://youtu.be/YepLEMcNsFs?t=25

11-Inch Footlong

Subway

You probably remember the super successful $5 footlong campaign, but maybe it should have been called the $5 not-quite-a-footlong. After an Australian teen posted a photo to Facebook showing that his footlong was only 11 inches, lawyers raced to cash in. Local news stations had a field day visiting Subways and measuring the sandwiches on air. Subway ultimately settled the class action lawsuit, but a judge overruled the settlement and threw out the case. The ruling said that Subway hadn’t intentionally deceived its customers, most of its footlongs really were a foot long, and they all contained the same weight of bread and toppings. Worst of all, the money from the settlement would have gone almost entirely to the lawyers, making the suit totally frivolous.

Sources: https://en.wikipedia.org/wiki/Subway_(restaurant)#$5_footlongs https://cei.org/news_releases/consumers-win-in-subway-footlong-settlement-as-plaintiffs-walk-away/ https://www.forbes.com/sites/ericgoldman/2016/02/29/why-the-subway-footlong-lawsuits-fell-short/

“Good Morning America” (1975-)

ABC

News report about the lawsuit: https://youtu.be/xEv7LYEQb5g

Image of the Facebook post that started it all: https://youtu.be/xEv7LYEQb5g?t=38

YouTube: WPTV News - FL Palm Beaches and Treasure Coast

Anchors measure a footlong sub on air: https://youtu.be/mieEX_kRXdU?t=29 (insert after “measuring the sandwiches on air.”)

YouTube: anyanyany55

Five dollar footlong ad: https://youtu.be/J5bSjAPkDvw

Racial Discrimination

Starbucks

You probably heard about the 2018 incident in which two Black men were arrested at a Philadelphia Starbucks for … doing nothing. But you might not have heard about the white regional manager, Shannon Phillips, who was fired afterward. The arrests turned into a major scandal for the coffee chain, which immediately went into damage control mode. Starbucks higher-ups ordered Phillips to place a white district manager on leave, supposedly for discriminatory behavior. That manager had nothing to do with the arrests, nor did Phillips. She believed the manager was innocent, and that white employees were being scapegoated for the incident. She refused the order, and was fired. Phillips sued Starbucks for discrimination, and won more than $25 million in damages.

Sources: https://whyy.org/articles/starbucks-shannon-phillips-lawsuit-new-jersey-federal-judge/ https://www.bamlawca.com/california-labor-laws/former-starbucks-employee-awarded-256-million-in-wrongful-termination-lawsuit https://www.cnn.com/2023/06/14/business/starbucks-manager-racial-discrimination/index.html

NBC News

Report about the arrests: https://youtu.be/V7tT0NSTa9s

“The Daily Show” (1996-)

Comedy Central

Trevor Noah commentary on the arrests: https://youtu.be/PyI-RjfE0ks?t=86

“Good Morning America” (1975-)

ABC

News report about Phillips’ win: https://youtu.be/h2YTEbPIBck

YouTube: CBS Philadelphia

News report about Phillips’ lawsuit: https://youtu.be/GYM7IpgD470

Sued by Colonel Sanders

KFC

Not many chains can say they were sued by their own founder. Harland Sanders began selling fried chicken in 1934, and his first franchise opened in 1952. In 1964, Sanders sold Kentucky Fried Chicken to a pair of businessmen but stayed on as the quality control officer and spokesman. In 1971, the men sold KFC to the Heublein company, which started making changes to the recipes. Sanders – then in his 80s – was not happy. He opened a competing restaurant, prompting Heublein to sue him. Sanders countersued Heublein for $122 million for using his image to promote products he thought were terrible. The suits were settled, with Heublein paying Sanders $1 million and Sanders agreeing to change the name of his new restaurant.

Sources: https://en.wikipedia.org/wiki/Colonel_Sanders

https://en.wikipedia.org/wiki/History_of_KFC#Heublein_and_strained_relations_with_Sanders;_R._J._Reynolds

YouTube: Weird History Food

Explanation of Sanders’ lawsuit: https://youtu.be/37py2MBw6qQ?t=780

YouTube: AKA PARTNERS

Colonel Sanders cooking: https://youtu.be/fJL9ej4TxUY

YouTube: Grit

Discussion of the lawsuit: https://youtu.be/2biMdu14pfw?t=213

Mystery Meat

Taco Bell

Most people don’t expect fast food to be made with top quality ingredients. However, in 2011, a lawsuit alleged that Taco Bell’s beef wasn’t even actually beef. The plaintiffs claimed that they’d tested the meat and found that it was only 35% beef, with the rest being fillers and binders. Taco Bell went on the offensive, spending millions on an aggressive ad campaign telling customers that the meat was actually 88% beef. The lawsuit was eventually dropped, but it wasn’t the last time Taco Bell went to court over its meat. In 2023, a New York man sued the company for false advertising, saying that pictures of the food showed twice as much beef as he actually got. [xref] He dropped the suit four months later.

Sources: https://www.courtlistener.com/docket/67649217/12/siragusa-v-taco-bell-corp/ https://topclassactions.com/lawsuit-settlements/consumer-products/food/taco-bell-class-action-claims-chain-falsely-advertises-amount-of-food-in-products/ https://www.npr.org/sections/health-shots/2011/04/22/135539926/with-lawsuit-over-taco-bells-mystery-meat-is-a-mystery-no-longer

YouTube: CHRISTUS Trinity Mother Frances Health System

CBS 19

News report on the lawsuit: https://youtu.be/Hnb_Y_1wTsw

CNN

News report on the lawsuit being dropped: https://youtu.be/znIzeyT68w0

YouTube: Weird History Food

Explanation of the lawsuit: https://youtu.be/xi7jDkv2NFU?t=167

Xref

YouTube: KTVB

Taco Bell sued for false advertising of its Crunchwraps, Mexican Pizzas: https://youtu.be/NtglwjjzMPs

E. Coli Outbreak

Jack in the Box

Between 1992 and 1993, a massive E. coli outbreak linked to Jack in the Box locations in four states sickened over 700 people and killed four children. The tragedy was so severe that it led to major changes in food safety laws. It also led to multiple lawsuits. Jack in the Box ultimately paid out over $65 million to the victims and their families. The restaurant’s beef supplier, Foodmaker Inc., was also sued and settled with the families for an undisclosed amount. Despite improvements to food safety regulations, E. coli continues to plague the industry. In 2024, an outbreak tied to McDonald’s onions made over 100 people sick and caused one death. [xref] It also resulted in multiple lawsuits against the chain and its supplier.

Sources: https://billmarler.com/key_case/jack-in-the-box-e-coli-outbreak https://en.wikipedia.org/wiki/1992%E2%80%931993_Jack_in_the_Box_E._coli_outbreak

https://citeseerx.ist.psu.edu/document?repid=rep1&type=pdf&doi=e669382ee1c7ab0c49c39d68b70fe786428a1b08#page=41

https://en.wikipedia.org/wiki/2024_McDonald%27s_E._coli_outbreak#

YouTube: Foggy Melson

News report about the outbreak as it was ongoing: https://youtu.be/OkPlbuJIB9s

YouTube: marlerclark

Food safety expert talks about the outbreak: https://youtu.be/RRWpYKsHLSQ?t=186

C-SPAN

Bill Clinton attends a town hall on the crisis and talks to parent of sick child: https://www.c-span.org/clip/white-house-event/user-clip-jack-in-the-box-ecoli-outbreak/4495884

YouTube: Weird History Food

Effect on Jack in the Box: https://youtu.be/mZ8-Dfmjyhs?t=475

Xref

“ABC World News Tonight” (1948-)

ABC

McDonald's says it found source of onions linked E. coli outbreak: https://youtu.be/yp_rixAd-Xo

Strange Chili Ingredient

Wendy’s

Finding a hair in your food is gross, but imagine diving into your bowl of chili and discovering a finger. That’s what supposedly happened to Anna Ayala at a Wendy’s in 2005. Ayala attempted to sue the chain, but when you find a human body part in your food, you can’t just hire a lawyer and collect a check. Wendy’s quickly determined that the finger didn’t come from any of its employees or suppliers, and a police investigation found that it hadn’t been cooked. It was later revealed that Ayala had bought the finger from a friend who lost it in an accident and put it in the chili herself. She served three years in prison for fraud and was banned from Wendy’s for life.

Sources: https://en.wikipedia.org/wiki/Anna_Ayala

“Good Morning America” (1975-)

ABC

Interview with the woman who claimed she found the finger: https://youtu.be/L6-kxlrwuc8?t=17

Discussion of investigation: https://youtu.be/UexOZtmvymg

NBC 11

Story on the woman’s arrest: https://youtu.be/x3tkINlq8Rg

YouTube: lugnutsoldcrap

2001 Wendy’s chili commercial: https://youtu.be/I2e8RlqhrSo

Hot Coffee

McDonald’s

This lawsuit became infamous, but it wasn’t as frivolous as the media led people to believe. In 1992, 79-year-old Stella Liebeck spilled McDonald’s coffee into her lap while sitting in her car. The drink was so hot that it caused third degree burns, and Liebeck had to undergo skin grafts. At first she just asked the company to cover her medical bills, but McDonald’s refused. When she took them to court, a jury awarded her almost $3 million, which a judge reduced to $640,000. Amazingly, this wasn’t the only time McDonald’s had to pay out for causing a severe burn. In 2023, a jury awarded $800,000 to the family of a four-year-old girl who received a second-degree burn from a McNugget. [xref]

Sources: https://en.wikipedia.org/wiki/Liebeck_v._McDonald%27s_Restaurants

https://www.nbcnews.com/news/us-news/jury-awards-florida-girl-burned-mcdonalds-chicken-mcnugget-800000-dama-rcna95305

YouTube: RETRO REPORT

Clips of late-night comedians mocking the lawsuit: https://youtu.be/ENTaHxjN4xI?t=442

YouTube: Hot Verdict

Discussion of the case: https://youtu.be/zMf80xju05A?t=17

YouTube: LegalEagle

Discussion of the extent of her injuries: https://youtu.be/s_jaU5V9FUg?t=76

YouTube: Today I Found Out

Discussion of McDonald’s reaction: https://youtu.be/PAzMMKIspPQ?t=197

Xref

YouTube: FOX 26 Houston

News report on McNugget incident: https://youtu.be/VE2KdM-KYng

Which of these lawsuits did you think was the most shocking? Let us know in the comments below.

YouTube: FOX 13 News Utah

Lawsuit claims Subway tuna isn’t tuna: https://youtu.be/IHnAFmGXz9M?t=8