EX-DUNKIN’ DONUTS EXEC ACCUSES COMPANY OF ENGAGING IN SMEAR CAMPAIGN

February 10, 2010—A former Dunkin’ Donuts executive has sued the company in Massachusetts state court, claiming that it violated a 2007 severance agreement that prohibited the company from disparaging the executive or commenting on the terms of his separation. Dunkin’s slanderous comments, the lawsuit alleges, have cost the former executive employment opportunities with other food service companies.  The lawsuit seeks $5 million in damages.

Michael O’Donovan served as Dunkin’s Vice President of Global Research and Development from May 2004 through July 2007.  A renowned chef, Mr. O’Donovan spearheaded the overhaul of Dunkin’s menu and the campaign to remove transfats from its donuts.

Mr. O’Donovan left Dunkin in 2007.  His severance agreement allegedly prohibited the company from discussing the circumstances of Mr. Donovan’s departure or making disparaging remarks about his character.  Since that time, however, Mr. Donovan claims that highly placed Dunkin executives have smeared his reputation by spreading rumors to other food service employers about “excessive drinking, inappropriate conduct with female employees, chronic inability to meet deadlines, and a misleading and dishonest character.”  The rumors, he claims, are false.

Mr. O’Donovan claims that Dunkin’s conduct has cost him opportunities with, among others, Arby’s, Papa John’s, Wendy’s, the Back Bay Restaurant Group, Buffets and Buca Di Beppo.  In the lawsuit, Mr. O’Donovan claims Dunkin’s conduct has caused irreparable damage to his reputation within the food service industry, financial hardship, lost employment opportunities, and great emotional distress.  The lawsuit seeks $5 million in damages.