Byron Allen’s $10 billion lawsuit against McDonald’s is set to go to trial, with U.S. District Judge Fernando Olguin ruling that there is enough evidence to support claims of racial discrimination. The lawsuit accuses McDonald’s of violating civil rights laws by relegating Allen’s media companies to a lower-tier advertising budget specifically aimed at Black audiences. The case, which revolves around allegations of McDonald’s discriminatory ad spending practices, will be heard by a jury.
Allen’s companies, Entertainment Studios and The Weather Channel, claim they were unfairly pushed into a separate advertising tier under a different agency, Burrell, despite their content not being solely focused on Black audiences. The lawsuit asserts that McDonald’s allocated its larger advertising budget to white-owned media companies through its general market agency, OMD Worldwide, while smaller budgets were reserved for Black-targeted content.
McDonald’s has denied the allegations, arguing that its decision-making is based on objective criteria such as viewership and audience reach, claiming that Allen’s networks did not meet the company’s thresholds. The fast-food giant also contended that Allen’s companies were not being discriminated against, but rather, were directed to Burrell because of their limited appeal among general market audiences.
In addition to the ad spending accusations, Allen has criticized McDonald’s CEO Chris Kempczinski over past controversial text messages that were seen as racially insensitive. Allen called for the CEO’s resignation, citing “overwhelming evidence” of discriminatory practices by McDonald’s.
The trial will examine whether McDonald’s had legitimate, non-discriminatory reasons for working with Burrell or if its actions were motivated by racial bias. Both sides will present their evidence, and a jury will determine if McDonald’s engaged in discriminatory behavior or if its actions were justified.
This lawsuit comes after several legal battles involving McDonald’s, including a previous case where the company was accused of making false pledges to increase ad spending with Black-owned media outlets and a settlement in 2021 regarding discriminatory practices against Black franchisees. As the case goes to trial, its outcome could have significant implications for both McDonald’s business practices and racial equality within the advertising industry.
