McDonald’s has reached a confidential settlement with media mogul Byron Allen, closing the chapter on a massive $10 billion lawsuit that accused the company of racial discrimination in its advertising.
Allen claimed the fast-food giant purposely excluded his Black-owned media companies, including The Weather Channel and several entertainment networks, from its larger advertising budget. Instead, he said McDonald’s slotted his platforms into a much smaller ad category meant for “Black-focused” media, hurting their revenue and reach.
The case was headed for trial next month in Los Angeles federal court, but Friday’s agreement shuts it down early. The deal also settles a related $100 million suit Allen filed in California state court.
While the financial terms weren’t disclosed, both sides seem ready to move forward. Allen’s companies acknowledged McDonald’s efforts to invest more in Black-owned media, and McDonald’s committed to buying ads at market value as part of its broader strategy. The company denied any wrongdoing.
Allen’s media empire controls over 90% of Black-owned media in the U.S., and he argued that McDonald’s had not followed through on a public promise to increase national ad spending with Black-owned outlets from 2% to 5% by 2024.
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