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New Straits Times
a day ago
- Business
- New Straits Times
McDonald's settles Byron Allen's US$10 billion lawsuit over ads for Black-owned media
McDonald's has settled a US$10 billion lawsuit by the media entrepreneur Byron Allen accusing the fast-food chain of "racial stereotyping" by excluding Black-owned media from much of its advertising budget. Friday's settlement between McDonald's and two of Allen's companies, Entertainment Studios Networks and the Weather Group, averts a scheduled July 15 trial in Los Angeles federal court. It also resolves claims raised in Allen's related US$100 million lawsuit against McDonald's in Los Angeles Superior Court. McDonald's said it will buy ads "at market value" from Allen's companies "in a manner that aligns with its advertising strategy and commercial objectives." Settlement terms are confidential. McDonald's, based in Chicago, denied wrongdoing in agreeing to settle. In a statement, Allen's companies said "we acknowledge McDonald's commitment to investing in Black-owned media properties and increasing access to opportunity. Our differences are behind us." Allen accused McDonald's of falsely labeling Entertainment Studios as a media company that produces content solely for Black viewers, consigning it to its "de minimis" ad budget for those viewers instead of its general ad budget. He also accused McDonald's of lying when it pledged in 2021 to boost national ad spending with those media to 5 per cent from 2 per cent by 2024. Allen said he relied on that pledge when seeking business from McDonald's, only to be rebuffed, and that his Allen Media Group represented more than 90 per cent of Black-owned media.
Yahoo
a day ago
- Business
- Yahoo
Byron Allen and McDonald's Reach Settlement in Lawsuit Over Black-Owned Media Advertising Pledge
McDonald's has settled its $10 billion lawsuit levied by Byron Allen and his media companies over black-owned media advertising pledges. The settlement was reached Friday between the fast food company and Allen's companies Entertainment Studios Network and the Weather Group. The settlement both dodges the upcoming July 15 court trial and also resolves claims made in a separate but related $100 million lawsuit against the company. '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 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.' Byron's pair of media companies Entertainment Studios Network and Weather Group also commented on the settlement. 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,' their statement read. 'Our differences are behind us, and we look forward to working together.' The original lawsuit came out of 2021 pledge by McDonald's to more than double its spending on American media companies and production shops owned by Black, Asian, Latino, female and LGBTQ people, as well as individual content creators, by the end of 2024. Allen's lawsuit came in 2023 and called this a 'lie' and 'false promise,' largely due to what it argued was insufficient spending on Allen's companies in particular. In February 2024, a Los Angeles Superior Court judge has dismissed the $100 million lawsuit filed citing California's anti-SLAPP laws. Judge Mel Recana noted that the suit was filed nearly 2 years before McDonald's self-imposed deadline, and as such called the accusations within it 'purely speculative.' The post Byron Allen and McDonald's Reach Settlement in Lawsuit Over Black-Owned Media Advertising Pledge appeared first on TheWrap.
Associated Press
a day ago
- Business
- Associated Press
McDonald's USA, LLC and Entertainment Studios Network/The Weather Group Announce Settlement to Pending Litigation
CHICAGO, June 13, 2025 /PRNewswire/ -- McDonald's USA, LLC and Entertainment Studios Network/The Weather Group today announced an agreement to settle pending litigation between them. The parties reached a confidential commercial agreement whereby McDonald's will continue to purchase advertising from ESN in a manner that aligns with its advertising strategy and commercial objectives and ESN will dismiss its lawsuit against McDonald's in the United States District Court for the Central District of California. Under the terms of the agreement, which are confidential, McDonald's is not admitting any wrongdoing, and the ads sold will, as per all such commercial deals, be priced at market value. McDonald's USA, LLC said: '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. 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.' Entertainment Studios Network/The Weather Group said: 'We are pleased to find a resolution that maintains our business relationship. 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.' View original content: SOURCE McDonald's USA
