McDonald's Malaysia Takes Legal Action Against Israel Boycott Movement For Defamation: Report

Gerbang Alaf Restaurants Sdn Bhd (GAR), which is the licensee of McDonald's Corporation (NYSE: MCD) in Malaysia, has reportedly initiated a legal action against the Boycott, Divestment and Sanctions (BDS) Malaysia movement.

The lawsuit, seeking damages of 6 million ringgit ($1.31 million), accuses BDS Malaysia of making false and defamatory statements that have negatively impacted the fast-food giant's business operations in the country, reported Reuters.

Also Read: McDonald's Ambitious Leap - From 40,000 To 50,000 Stores By 2027, Digital Innovation, And The Rise Of CosMc's

Some Western fast-food brands in the country, as in some other Muslim nations, have been targeted by boycott campaigns over Israel's military offensive in Gaza, the report noted.

In the writ of summons, GAR detailed the detrimental effects of the boycott on McDonald's Malaysia, including reduced profits, job cuts, outlet closures, and shortened operating hours.

As per the report, BDS Malaysia denied any defamation against McDonald's Malaysia and said it would leave the matter to the court.

According to the report, the BDS movement aims to end international support for Israel's oppression of Palestinians and pressure Israel to comply with international law.

Price Action: MCD shares are trading higher by 0.07% at $296.73 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Company