Shocking Discrimination Lawsuit: Byron Allen Takes On McDonald’s – What You Need to Know

Media tycoon Byron Allen’s $10 billion racial discrimination lawsuit against McDonald’s may go to trial, according to a federal judge in California. In what U.S. District Judge Fernando M. Olguin described as a “close call.”

The court decided that a jury would be the most appropriate forum to consider Allen’s allegations that the fast-food company participated in “racial stereotyping” by refusing to use Black-owned media for its advertising.

“At a minimum, this is the type of case where the ‘trial court is permitted, in its discretion, to deny even a well-supported motion for summary judgment, if it believes the case will benefit from a full hearing,’” Olguin wrote in a 25-page ruling.

Allen’s networks Are ineligible

According to the lawsuit, McDonald’s declared Allen’s networks ineligible for the “vast majority” of its advertising money, in violation of both federal and California civil rights statutes.

Allen claimed that McDonald’s denied his Entertainment Studios Networks, Inc. and Weather Group LLC, the company that operates the Weather Channel, tens of millions of dollars in yearly revenue by relegating them to a “African American tier” with a separate Black-focused marketing agency and a significantly reduced ad budget.

The lawsuit alleges that because Allen is Black, he and his businesses were denied access to McDonald’s larger advertising arm, which Entertainment Studios referred to as “blatant and pernicious discrimination.”

McDonald’s spent less than $5 million of its $1.6 billion advertising budget in 2019 on Black-owned media, despite the fact that around 40% of its patrons are Black, according to the complaint.

“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,” according to the complaint.

When McDonald’s declared in 2021 that it will expand its national ad expenditure on Black-owned media to 5% from 2% by 2024, as well as advertising on platforms owned by women, Asian Americans, LGBTQ people, and Hispanics, the complaint was launched. Allen told theGrio that he was happy with Olguin’s choice.

The McDonald’s Corporation stated in a statement that the judge’s ruling only indicated that neither side had satisfied the high bar for dismissal at this point in the case.

“We’re ready to demonstrate how completely without merit this case is. Like any other sane firm, McDonald’s chose to invest in media properties that complemented its business plan rather than ones that didn’t perform well or didn’t connect with its target demographics, the company stated.