McDonald’s has settled a $10 billion lawsuit by the media entrepreneur Byron Allen difficult the fast-food chain’s alleged refusal to promote with black-owned media.
Friday’s settlement between McDonald’s and two of Allen’s firms, Leisure Studios Networks and the Climate Group, averts a scheduled July 15 trial in Los Angeles federal courtroom.
It additionally resolves Allen’s associated $100 million lawsuit in opposition to McDonald’s in Los Angeles Superior Courtroom.
McDonald’s stated it is going to purchase advertisements “at market value” from Allen’s firms “in a manner that aligns with its advertising strategy and commercial objectives.”
Settlement phrases are confidential.
McDonald’s, based mostly in Chicago, denied wrongdoing in agreeing to settle.
In an announcement, Allen’s firms stated “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 promoting with black-owned media, and mendacity when it pledged in 2021 to spice up nationwide advert spending with these media to five% from 2% by 2024.
He stated he relied on that pledge when in search of new enterprise from McDonald’s, solely to be rebuffed.
Allen additionally stated his Allen Media Group represented greater than 90% of black-owned media.
Allen’s networks embrace The Climate Channel, Automobiles.TV, Comedy.TV, ES.TV, Justice Central, MyDestination.TV, Pets.TV and Recipe.TV.
