Byron Allen's $10B Lawsuit Against McDonald's Heads To Trial

Byron Allen’s $10 billion lawsuit against a major fast-food chain is heading to trial.

Allen Media Group (AMG) filed the lawsuit against McDonald’s in the Superior Court of California in Los Angeles in May 2021, per Deadline. The lawsuit alleges that McDonald’s has engaged in racial discrimination by failing to allocate advertising dollars to Black-owned media companies, despite the fact that 40% of its U.S. sales come from the Black community. It claims McDonald’s refused to contract with AMG’s Entertainment Studios and Weather Group and sets Black-owned media at a disadvantage during the bidding process for advertising.

Allen and other leaders of Black-owned media companies requested in a letter that McDonald’s commit 5% to 15% of its advertising budget to Black-owned media outlets.

McDonald’s said at the time, “Together with our Owner/Operators, we have doubled down on our relationships with diverse-owned partners. This includes increasing our spend with diverse-owned media from 4% to 10% and with Black-owned media from 2% to 5% of total national advertising over the next four years. Once we receive the complaint, we will review and respond accordingly.”

In the most recent updates, it appears the lawsuit has been green lit to move to trial by U.S. District Judge Fernando M. Olguin, who viewed Allen’s claims as a  “close call,” reports Variety.

“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 said in a 25-page order, according to the outlet.

Allen commented, per Variety:

“We have overwhelming evidence against McDonald’s — who has been sued by its Black executives, Black franchisees, and their global head of security — for racial discrimination. It is time for the McDonald’s Board of Directors, stockholders, and civil rights organizations nationwide to call for the resignation of CEO Chris Kempczinski, who was caught sending racist text messages about Black and Hispanic people.”

McDonald’s has issued a statement following the judge’s order.

“We are prepared to show that this case is utterly baseless. McDonald’s invested in media properties that aligned with the company’s business strategy and, like any other rational business, declined to invest in those that had low ratings or failed to reach the company’s target audiences.”