Media Mogul Byron Allen has filed a $10 billion lawsuit against McDonald’s Corp on Thursday, accusing the fast-food chain of racial discrimination for not advertising enough with Black-owned media outlets.
According to Reuters, the complaint filed in Los Angeles County Superior Court claims McDonald’s violated federal and state civil rights laws through its “racial animus and racial stereotyping” in allocating ad dollars.
The complaint claims that Chicago-based McDonald’s has refused to advertise with Allen’s Entertainment Studios Networks, which owns several black audience targeted lifestyle channels, or his Weather Group, which owns The Weather Channel.
Allen’s complaint details that Blacks comprise about 40% of McDonald’s customers, but the company devoted less than $5 million of its $1.6 billion U.S. ad budget in 2019 to Black-owned media.
“McDonald’s, like much of corporate America these days, publicly touts its commitment to diversity and inclusion, but this is nothing more than empty rhetoric,” the complaint stated.
Allen sued the corporation on the same day McDonald’s announced it would boost its national ad spending with Black-owned media to 5% from 2% by the year 2024. They also promised to spend more on Hispanic, Asian-American, women, and LGBTQ-owned platforms.
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