CHICAGO (AP) — The U.S. Equal Employment Opportunity Commission has filed a racial discrimination lawsuit against a popular Chicago-based restaurant chain for allegedly rarely hiring black job applications, and the agency says the company’s founder and some managers used racial slurs.

The lawsuit, filed Tuesday in U.S. District Court, alleges that Rosebud Restaurants Inc. is in violation of Title VII of the Civil Rights Act for failing or refusing to hire African-Americans based on their race.

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