Byron Allen, the chief of Allen Media Group, has recently settled a $10 billion lawsuit that he filed in 2021 against McDonald’s. The lawsuit alleged that the fast-food giant discriminated against Black-owned media companies in its TV advertising expenditures. The terms of the settlement were not disclosed, but it has prevented a trial that was scheduled to begin in federal court in Los Angeles.
In a joint statement issued by both parties, McDonald’s USA expressed pleasure in reaching a resolution with Mr. Allen. The statement highlighted McDonald’s commitment to inclusion and mutual respect, emphasizing a focus on a mutually beneficial commercial arrangement moving forward. Allen’s lawsuit revolved around the claim that McDonald’s practice of buying ad time on media outlets targeting Black viewers was discriminatory. The lawsuit argued that this practice was damaging to Black media owners as it limited the budgets available for reaching Black audiences compared to broader-based audiences.
The lawsuit was filed by Allen Media Group’s Entertainment Studios and Weather Group units. Allen expressed satisfaction with the resolution, acknowledging the clarification of preconceptions during the litigation process. He also recognized McDonald’s commitment to investing in Black-owned media properties and increasing access to opportunities. The settlement’s specifics regarding changes to McDonald’s ad buying practices remain unclear.
Byron Allen has a history of prevailing in civil rights lawsuits against major players in media and advertising. He reached settlements with Comcast, DirecTV, and Charter Communications in the past. Starting his company over 30 years ago with a single talk show, Allen now owns numerous lifestyle channels, the Weather Channel, and digital outlets like 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 United States.
This settlement marks a significant development in the ongoing efforts to address diversity and inclusion in the media industry. It showcases the importance of mutual respect and collaboration in fostering a more inclusive media landscape. Allen’s perseverance in advocating for equitable opportunities for Black-owned media companies sets a precedent for the industry as a whole.
