McDonald’s Settles Lawsuit with Byron Allen

By Jonathan Stempel

(Reuters) – McDonald’s has settled a $10 billion lawsuit brought by media entrepreneur Byron Allen, who challenged the fast-food chain’s alleged refusal to advertise with Black-owned media.

On Friday, the settlement between McDonald’s (NYSE:MCD) and two of Allen’s companies, Entertainment Studios Networks and the Weather Group, averted a scheduled July 15 trial in Los Angeles federal court.

The settlement also resolves Allen’s related $100 million lawsuit against McDonald’s in Los Angeles Superior Court.

McDonald’s stated that it will purchase ads “at market value” from Allen’s companies, aligning with its advertising strategy and commercial objectives.

The terms of the settlement are confidential. McDonald’s, headquartered in Chicago, denied any wrongdoing in reaching the agreement.

In a statement, Allen’s companies expressed, “we acknowledge McDonald’s commitment to investing in Black-owned media properties and increasing access to opportunity. Our differences are behind us.”

Allen accused McDonald’s of “racial stereotyping” for not advertising with Black-owned media and claimed they misled him by promising to increase national ad spending with those media from 2% to 5% by 2024. He stated he relied on that pledge when seeking business from McDonald’s, only to face rejection. Allen also claimed that his Allen Media Group represents over 90% of Black-owned media.

Allen’s networks encompass The Weather Channel, Cars.TV, Comedy.TV, ES.TV, Justice Central, MyDestination.TV, Pets.TV, and Recipe.TV.