A McDonald's franchise is suing a pro-Palestinian movement claiming that their anti-Israel protests led to a loss of more thsn $1 million.
Last week, Gerbang Alaf Restaurants Sdn Bhd, the franchise owner of McDonald's locations in Malaysia, filed a lawsuit against the Boycott, Divestment and Sanctions (BDS) movement in the country, for $1.31 million, or 6 million Malaysian ringgits, in damages, Reuters reported.
According to Reuters, the lawsuit claimed that the BDS movement in Malaysia made "false and defamatory statements" about McDonald's locations in the country relating to the ongoing war between Israel and Hamas militants.
The lawsuit, viewed by Reuters, also argued that BDS Malaysia posted messages on social media about boycotting companies, such as McDonald's, that were allegedly connected to the "genocidal war against Palestinians in Gaza." According to Reuters, Gerbang Alaf Restaurants Sdn Bhd claimed that the boycotts resulted in a loss of profits and job cuts.
On October 7, Hamas militants led a surprise attack on Israel, resulting in over 1,000 Israeli casualties. Since the attack, fighting has continued between the two and more than 22,000 casualties have been reported by Palestinian health officials as of Wednesday, The Associated Press reported.
Amid the ongoing fighting, many pro-Palestinian groups, such as the BDS movement, have called for boycotts against many companies that have shown support for Israel in the past and during the ongoing war.
McDonald's previously faced calls for a boycott in many Middle Eastern countries after a location in Israel announced they were giving away free food to Israeli Defense Force soldiers.
In a statement posted on X, formerly Twitter, BDS Malaysia said their organization is a registered non-governmental organization "which calls on the Malaysian public, organizations and the government to boycott Israel and organizations that are complicit with Israeli atrocities towards Palestinians."
The statement confirmed that the movement received a lawsuit from McDonald's Malaysia for defaming the fast-food chain and said that they "categorically deny this."
"We have therefore decided to [let] the court decide on the matter," the statement said. "BDS Malaysia has engaged the services of legal firm Raja Riza and Associates. After consulting with our lawyers, we will issue a more detailed statement."
In several social media posts by BDS Malaysia, they can be seen calling for boycotts against McDonald's locations across the globe.
Newsweek reached out to BDS Malaysia via email for comment.
On October 17, McDonald's Malaysia issued a statement on their website announcing they were donating 1 million Malaysian ringgits ($216,000) to a Palestinian humanitarian fund created through the country's government.
"Our contribution to the Palestine Humanitarian Fund will directly support relief efforts in Gaza, addressing the critical needs of those affected by this conflict. This includes medical aid, food, and shelter, as well as evacuation assistance if deemed necessary by the relief organizations.
"Our unwavering commitment is focused on supporting the provision of essential aid to those in dire circumstances," the statement on October 17 said.
Newsweek has reached out to Malaysia McDonald's via its website for comment.
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Matthew Impelli is a Newsweek staff writer based in New York. His focus is reporting social issues and crime. In ... Read more
