June 14, 2025
Media mogul Byron Allen accused the fast-food chain of ‘racial stereotyping’ by excluding Black-owned media from much of its advertising budget.
On June 13, just days ahead of trial, McDonald’s settled its lawsuit with Byron Allen for an undisclosed amount. Allen had sued the fast-food chain for $10 billion.
Allen is the owner of the Weather Group and Entertainment Studios Networks. The entrepreneur sued the corporation over its alleged refusal to advertise with Black-owned companies. The settlement comes just two days before the case was scheduled for trial, June 15.
Details of the sentiment remain sealed. Yet, both Allen and Chicago-based McDonald’s USA released statements addressing the end of the suit.
McDonald’s admits no wrongdoing. Still, the corporation stated its commitment to working with Black-owned media where “mutually beneficial.”
“We are pleased that Mr. Allen has come to appreciate McDonald’s unwavering commitment to inclusion, and has agreed to refocus his energies on a mutually beneficial commercial arrangement that is consistent with other McDonald’s supplier relationships,” 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 contributions to the betterment of our system.”
In the joint statement, Allen insinuates he has clarity about the structuring of the company’s ad tiers. A better understanding that will allow him to move forward doing business with the company.
“We are pleased to find a resolution that maintains our business relationship,” Allen said. “During the course of this litigation, many of our preconceptions have been clarified, and we acknowledge McDonald’s commitment to investing in Black-owned media properties and increasing access to opportunity. Our differences are behind us, and we look forward to working together.”
This is not Allen’s first time holding a corporation accountable for alleged discrimination. The media mogul has taken both Comcast, Direct TV, and Charter Communications.
In 2020, Allen’s suit against Comcast made its way to the Supreme Court after battling through the court system for five years. Allen claimed racial discrimination when a carriage deal between the companies fell through. The high court dismissed the case stating Allen needed to prove race was the sole reason for the failed negotiations as opposed to one element. After the case was sent back to a lower court Comcast chose to settle, The Los Angeles Times reports.
Most of the settlement terms remain undisclosed. Still, Allen soon negotiated to add Comedy.TV, Recipe.TV, and JusticeCentral.TV — on Comcast’s Xfinity cable television packages. He also negotiated a larger distribution package for the Weather Channel.
RELATED CONTENT: For Sale: Byron Allen Puts Investment Bank In Charge Of Selling Television Stations
