First Lawsuit Filed Against McDonald's Over E. Coli Outbreak

By Diana Novak Jones
(Reuters) – A Colorado man has initiated what seems to be the first lawsuit against McDonald's (NYSE:MCD) linked to an E. coli outbreak associated with Quarter Pounder burgers that has resulted in one death and has made nearly 50 others ill.

The lawsuit, submitted in the Circuit Court of Cook County, Illinois, on Wednesday, claims that Eric Stelly consumed food from a McDonald's in Greeley, Colorado, on October 4 and subsequently tested positive for E. coli. Colorado health officials later informed Stelly that his illness was tied to the McDonald's outbreak. Although Stelly resides in Greeley, he filed the lawsuit in Chicago, the location of McDonald's headquarters.

Seeking over $50,000 in damages, the lawsuit alleges negligence on McDonald's part regarding food handling and care. Following news of the lawsuit, McDonald's shares saw a reduction in gains, though they were still up 0.5%.

McDonald's representatives did not provide immediate comments upon request. Joe Erlinger, President of McDonald's USA, stated on Wednesday that the fast-food chain is working on rebuilding public trust after removing the affected menu item from a fifth of its 14,000 U.S. locations.

The outbreak has impacted individuals across the U.S. West and Midwest, claiming one life and resulting in 10 hospitalizations due to serious complications, according to the U.S. Centers for Disease Control and Prevention (CDC).

Attorney Ron Simon, representing Stelly, indicated he is also advocating for another 15 individuals affected by the outbreak.

Both the CDC and McDonald's are examining the company's supplies of slivered onions and beef patties to identify the outbreak's source. The U.S. Department of Agriculture determined on Wednesday that the onions are the likely culprit, although testing of beef samples for E. coli is ongoing.

The E. coli O157:H7 strain responsible for the McDonald's outbreak is similar to that associated with a 1993 Jack in the Box (NASDAQ:JACK) incident that led to four children's deaths. McDonald's suppliers routinely test their products and completed tests in the timeframe indicated by the CDC, which revealed no detection of this E. coli strain, according to company spokespersons.