(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.