Byron Allen, McDonald’s Reach Settlement in $10 Billion Lawsuit
Byron Allen, the chief of Allen Media Group, has reached a settlement in the $10 billion lawsuit he filed in 2021 against McDonald’s for alleged discrimination against Black-owned media companies in TV advertising expenditures. The terms of the settlement were not disclosed, avoiding a trial that was scheduled to begin next month in federal court in Los Angeles. In a joint statement issued late Friday, both sides announced the agreement.
McDonald’s USA stated, “We are pleased that Mr. Allen has come to appreciate McDonald’s unwavering commitment to inclusion and has agreed to refocus his energies on a mutually beneficial commercial arrangement that is consistent with other McDonald’s supplier relationships.” They look forward to Allen’s contributions to their system.
Allen’s lawsuit focused on McDonald’s practice of buying ad time on media outlets targeting Black viewers, claiming it was discriminatory as these purchases were made from a budget set aside for the “African American tier” of outlets. This tier had limited funds compared to the general tier used for broader audiences on larger networks and platforms. The lawsuit was filed by Allen Media Group’s Entertainment Studios and Weather Group units.
Allen expressed satisfaction with the resolution, stating, “Our differences are behind us, and we look forward to working together.” The settlement outcome regarding changes to McDonald’s ad buying practices remains unclear. Allen has a history of prevailing in civil rights lawsuits against major media and advertising players, reaching settlements with Comcast, DirecTV, and Charter Communications.
Starting his company over 30 years ago with a single talk show, Allen now owns various lifestyle channels, the Weather Channel, and digital outlets such as The Grio and HBCU Go. Recently, he enlisted the help of investment bank Moelis & Co. to sell a collection of 28 network affiliate stations in medium and small markets across the U.S.
The resolution of the lawsuit between Byron Allen and McDonald’s marks a significant milestone in the ongoing efforts to address diversity and inclusion in media advertising practices. The outcome sets a precedent for fair treatment of Black-owned media companies and underscores the importance of mutual respect and collaboration in the industry.
