KUALA LUMPUR – McDonald’s Malaysia has not fully withdrawn its legal suit against BDS (Boycott, Divestment, Sanctions) Malaysia, as they have yet to agree on the terms of the withdrawal.
In a statement today, BDS Malaysia announced that the matter will be brought before a court-appointed judge for resolution on April 18.
“As it stands now, their suit has not been fully withdrawn because we have not yet agreed on the terms of the withdrawal,” BDS Malaysia said.
It further said that BDS Malaysia feels compelled to clarify the situation.
“The press statement issued by Gerbang Alaf, which announced their withdrawal of the suit, was not only inaccurate but also misleading.
“It misrepresented the true nature of the withdrawal and BDS Malaysia’s position on the issue,” it added.
On March 22, the company said it was informed through the press that Gerbang Alaf, the local McDonald’s franchisee, had decided to withdraw its legal suit.
“There was never any agreement during the first mediation session due to Gerbang Alaf’s refusal to accede to our demand that they condemn Israeli crimes of genocide in Gaza.
“However, we were not surprised by their decision to withdraw their suit because their case against us was very weak. We were confident of winning the case should it go to full trial,” it said.
In December, the fast-food chain sued BDS Malaysia for RM6 million for defaming the company over alleged support of Israel.
BDS Malaysia began boycott calls against McDonald’s soon after October 7 last year, when photos of Israeli soldiers enjoying McDonald’s takeaway meals went viral.
Both sides met for mediation at the Shah Alam court complex on March 18, after which BDS Malaysia’s lawyer, Datuk M. Reza Hassan, said the session had been “very positive”.
Mediation was to have continued on April 30, before McDonald’s announcement on withdrawing its suit today.
In its suit, McDonald’s Malaysia said it lost RM3 million due to shorter business hours, aside from having to pay RM1.5 million in severance compensation to employees and losing another RM1.5 million due to expired food products and raw material waste.
It had also demanded an unconditional apology from BDS Malaysia on its social media pages and the removal of defamatory content that featured the brand’s logo, besides additional compensation for exemplary, special, and general damages, as well as 5% interest per annum, costs, and 5% interest on costs.
McDonald’s operations here are run by Gerbang Alaf Restaurants Sdn Bhd, which in 2017 was fully taken over by the Reza Group from Saudi Arabia and a local business partner. – April 15, 2024