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McDonald’s Settles Lawsuit With Michigan Muslims

The outline of the settlement was negotiated in January


04_05_11---McDonalds_webA Michigan judge has approved the settlement of a class-action lawsuit against McDonald’s (NYSE:MCD) over improper sales of non-halal chicken.

The lawsuit began after Ahmed Ahmed, a Muslim, purchased chicken that was advertised as being prepared in accordance with Islamic halal requirements at a Dearborn, Mich., McDonald’s. Concerned that the food might not have been prepared as advertised, he contacted an attorney who discovered that the restaurant sometimes sold non-halal foods as halal when it ran out of the halal items, the Press and Guide noted.

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McDonald’s and the franchise owner of the restaurant agreed to a $700,000 settlement in January. Under the settlement, Ahmed will be paid $20,000, while his lawyers will get $286,941.  A local clinic that caters to Muslim patients will receive $274,000, and the Arab American National Museum will get $115,559.

An attorney for Ahmed said the money would be paid to the recipients inside 30 days. Only two U.S.-based McDonald’s restaurants — both located in Dearborn — sell halal foods.

Shares of McDonald’s fell more than 1% in Thursday morning trading.

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