Media Mogul Byron Allen Reaches Settlement In $10B Racial Discrimination Lawsuit Against McDonald’s
Media mogul Byron Allen has settled his $10 billion racial discrimination lawsuit against McDonald’s, Variety reports, ending a legal battle over the fast-food giant’s advertising practices toward Black-owned media.
Announced in a joint statement on June 13, according to the outlet, the agreement avoids a federal trial that was set to begin next month in Los Angeles, CA. While terms were not disclosed, both sides expressed optimism about their renewed business relationship. McDonald’s said the deal establishes a commercial arrangement “consistent with other McDonald’s supplier relationships” and reaffirmed its “unwavering commitment to inclusion.”
AFROTECH™ previously reported that the lawsuit claimed McDonald’s used a tiered ad-buying system that placed Black-targeted media in a lower “African American tier” with fewer advertising dollars than its general market budget. Allen argued this structure marginalized Black-owned outlets, limiting access to larger ad buys despite their reach.
“We are pleased to find a resolution that maintains our business relationship,” Allen said in a statement, according to Variety. “Many of our preconceptions have been clarified, and we acknowledge McDonald’s commitment to investing in Black-owned media and increasing access to opportunity.”
While it’s unclear whether the settlement requires specific changes to McDonald’s ad strategy, it may represent progress toward more equitable media investment. In 2021, McDonald’s pledged to increase its national ad spend with Black-owned media from 2% to 5% by 2024.
Allen, a longtime advocate for media equity, has reached similar settlements with Comcast, DirecTV, and Charter Communications after filing civil rights lawsuits challenging exclusionary media practices. His efforts have highlighted systemic bias in corporate ad spending and its impact on Black-owned platforms.
He launched Allen Media Group over 30 years ago with a single talk show. Today, his portfolio includes The Weather Channel, The Grio, HBCU GO, other streaming networks, and multiple local TV stations. Allen, as AFROTECH™ previously reported, hired Moelis & Co. to explore the sale of 28 network affiliates, a move that signals his evolving business strategy.
The outcome of the lawsuit may influence how corporations allocate future ad budgets and how Black-owned media compete in an increasingly digital marketplace.
