McDonald’s settles Byron Allen’s $10 billion lawsuit over allegedly excluding Black-owned media from ad spending

McDonald’s Corporation has reached a confidential settlement with media mogul Byron Allen. This resolves a $10 billion federal lawsuit that accused the fast-food giant of racial discrimination in its advertising practices.

The agreement was settled before it was set to go to trial in Los Angeles on July 15.

Details: Byron Allen’s McDonald’s lawsuit

Allen’s companies, Entertainment Studios Networks and The Weather Group, alleged that McDonald’s systematically excluded Black-owned media from its general advertising budget, relegating them to a separate tier with significantly reduced spending.

Statements

In a joint statement, both parties acknowledged a renewed commitment to collaboration. “We are pleased to find a resolution that maintains our business relationship,” Allen’s companies said.

“We acknowledge McDonald’s commitment to investing in Black-owned media properties and increasing access to opportunity”.

McDonald’s, which denied any wrongdoing, agreed to continue purchasing advertising from Allen’s media outlets “at market value”.

Alleged disparity against Black-owned media

The lawsuit, filed in 2021, spotlighted reported disparities in McDonald’s $1.6 billion annual advertising budget. Only a fraction was reportedly allocated to Black-owned media despite Black consumers representing a significant portion of its U.S. sales.

Allen, whose media empire includes The Weather Channel, Justice Central, and The Grio, has previously taken major corporations to court over similar allegations. His legal actions have helped push conversations around equity in media representation and corporate accountability.

While the financial terms remain undisclosed, the settlement marks a pivotal moment in the ongoing push for inclusive advertising practices across the industry.