Byron Allen, head of Allen Media Group, reached a settlement in a $10 billion lawsuit filed in 2021, accusing it of discrimination against black-owned media companies in its television advertising spending.
No settlement terms were disclosed. The deal avoids a trial scheduled to begin in Los Angeles federal court next month. The two sides announced the agreement in a joint statement issued late Friday.
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“We are pleased that Mr. Allen began to appreciate McDonald’s unwavering commitment to inclusiveness and agreed to refocus our energy on reciprocating commercial arrangements that align with other McDonald’s suppliers,” McDonald’s USA said in a statement. “Our company’s unique three-legged stool model relies on mutual respect and we look forward to ESN’s contribution to system improvement.”
Allen’s lawsuit depends on his assertion that McDonald’s habit of buying ad time in the media is discriminatory against black audiences because the purchases are made from the budget because the complaints say the complaint is called the “African American Layer.” Allen’s lawsuit argues that this practice has caused harm to black media owners because the level of funds is limited than the general level that companies use to attract a wide audience on the largest network and platform.
The lawsuit was filed by the Allen Media Group’s entertainment studio and the Weather Group unit.
“We are delighted to find a resolution to maintain our business relationship,” Allen said. “Many of our preconceptions have been clarified during this litigation process, and we acknowledge McDonald’s’ commitment to investing in black-owned media properties and increasing access to opportunities. Our differences are behind us and we look forward to working together.”
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