Settlement finally reached between Byron Allen and McDonald’s after $10 billion TV advertising lawsuit

Byron Allen, the head of Allen Media Group, has reached a settlement with McDonald’s in a $10 billion lawsuit he filed against the company in 2021.

Why did Byron Allen file a lawsuit against McDonald’s?

Allen Media Group’s Entertainment Studios and Weather Group accused McDonald’s of discriminating against Black-owned media companies in its TV advertising expenditures.

The allegation made by Allen was that McDonald’s were damaging black media companies, and their owners, by setting aside a limited budget for how much they were prepared to pay for advertising on what Allen described as “the African American tier” of media outlets.

A key part of the media chief’s case was that no such limit was set for larger TV networks and platforms, which cater to a broader audience.

How much did Allen Media Group receive from McDonald’s?

The terms of the settlement, which averts a trial that was due to start in Los Angeles next month, weren’t disclosed. However, the two parties released a joint statement in which they pledged to put the dispute behind them.

“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,” stated the fast good giant.

Allen echoed McDonald’s’ sentiments: “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.”

Allen, who owns several lifestyle channels, The Weather Channel and several digital outlets, has won several civil right lawsuits over distribution deals for his channels and ad sales in the past, including against Comcast, DirecTV and Charter Communications.

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