BDS Malaysia says McD franchisee yet to fully withdraw lawsuit

Boycott Divestment Sanctions Malaysia (BDS Malaysia) said a statement by local McDonald’s franchisee Gerbang Alaf Restaurants Sdn Bhd (GAR) that it decided to withdraw its legal suit against the group, was inaccurate.

In a statement, the boycott advocacy group said the suit was not fully withdrawn as it had yet to agree upon withdrawal terms.

“BDS Malaysia feels compelled to set the record straight. The press statement issued by GAR (on March 22) announcing their withdrawal of the suit was not only inaccurate but also misleading.

“It misrepresents the true nature of the withdrawal and BDS Malaysia’s stance on the matter.

“There was never any agreement during the first mediation session due to GAR’s refusal to accede to our demand that they condemn Israeli crimes of genocide in Gaza,” said BDS Malaysia today.

It claimed that it was not surprised by GAR’s decision to withdraw the suit because their case was weak.

“We were confident of winning the case should it go to full trial.

“As it stands now, their legal suit has not been fully withdrawn because we have yet to agree upon the withdrawal terms.

“The matter will be brought for resolution on April 18 in front of a court-appointed judge,” said the group.

McD vs BDS

GAR filed a suit last year against the group advocating for boycotts against major international brands in response to the Israeli invasion of Gaza.

In its suit, GAR claimed RM6 million in damages, including revenue loss (RM3 million), compensation for employees who were laid off (RM1.5 million), and expiry of materials (RM1.5 million).

The plaintiff said the defendant incited the public to hate the McDonald’s brand due to the conflict between Israel and Palestine.

In response, BDS Malaysia denied defaming GAR, saying the group did not directly campaign against the fast-food chain giant but merely endorsed a boycott initiated by the public.

On March 22, McDonald’s Malaysia announced it was withdrawing the suit following a mediation process, with its managing director and local operating partner Azmir Jaafar citing the positive outcome of the mediation and clarifications made by BDS in their recent statements, acknowledging that the actions of the McDonald’s operator in Israel were wholly independent of McDonald’s Malaysia.

At the time, BDS Malaysia said McDonald’s would remain categorised under its “organic boycott targets” list. - Mkini