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McDonald's settles Byron Allen's $10 billion lawsuit over ads for Black-owned media
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McDonald's settles Byron Allen's $10 billion lawsuit over ads for Black-owned media
Jun 13, 2025 1:37 PM

June 13 (Reuters) - McDonald's has settled a $10

billion lawsuit by the media entrepreneur Byron Allen accusing

the fast-food chain of "racial stereotyping" by excluding

Black-owned media from much of its advertising budget.

Friday's settlement between McDonald's and two of Allen's

companies, Entertainment Studios Networks and the Weather Group,

averts a scheduled July 15 trial in Los Angeles federal court.

It also resolves Allen's related $100 million lawsuit

against McDonald's in Los Angeles Superior Court.

McDonald's said it will buy ads "at market value" from

Allen's companies "in a manner that aligns with its advertising

strategy and commercial objectives."

Settlement terms are confidential. McDonald's, based in

Chicago, denied wrongdoing in agreeing to settle.

In a statement, Allen's companies said "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 falsely labeling Entertainment

Studios as a media company that produces content solely for

Black viewers, consigning it to its "de minimis" ad budget for

those viewers instead of its general ad budget.

He also accused McDonald's of lying when it pledged in

2021 to boost national ad spending with those media to 5% from

2% by 2024.

Allen said he relied on that pledge when seeking business

from McDonald's, only to be rebuffed, and that his Allen Media

Group represented more than 90% of Black-owned media.

Allen's networks include The Weather Channel, Cars.TV,

Comedy.TV, ES.TV, Justice Central, MyDestination.TV, Pets.TV and

Recipe.TV.

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