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

billion lawsuit by the media entrepreneur Byron Allen

challenging the fast-food chain's alleged refusal to advertise

with Black-owned media.

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 had accused McDonald's of "racial stereotyping" by not

advertising with Black-owned media, and lying when it pledged in

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

2% by 2024.

He said he relied on that pledge when seeking new business

from McDonald's, only to be rebuffed. Allen also said 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.