McDonald’s Reaches Settlement with Byron Allen Over USD 10 Billion Racial Bias Lawsuit

McDonald’s has settled with media entrepreneur Byron Allen, ending a USD 10 billion lawsuit that accused the fast-food giant of racial bias by largely excluding Black-owned media from its advertising budget.

The agreement, announced on Friday, brings to a close the legal dispute involving Allen’s companies—Entertainment Studios Networks and Weather Group—and avoids a trial that was set for July 15 in a Los Angeles federal court. It also settles a related USD 100 million case filed in a California state court.

While the terms of the deal remain confidential, McDonald’s has agreed to purchase ads from Allen’s companies at market value, stating the ads will align with its broader marketing goals. McDonald’s has denied any wrongdoing as part of the settlement. Allen’s companies acknowledged McDonald’s efforts for the commitment to investing in Black-owned media and expanding access to opportunities.

The lawsuits stemmed from allegations that McDonald’s had unfairly categorised Allen’s media networks—such as The Weather Channel and Justice Central—as catering only to Black audiences. This, Allen argued, led to minimal ad spending from McDonald’s, even though his media group owns a majority of Black-owned outlets in the U.S.

Allen also pointed to McDonald’s public pledge in 2021 to raise its national ad spending with Black-owned media from 2% to 5% by 2024. He said he took that commitment seriously when seeking business with the company, only to be turned away. McDonald’s hasn’t publicly commented beyond the settlement announcement, this resolution signals a step forward in efforts to build more inclusive advertising practices.