Byron Allen Reaches Settlement with McDonald’s in $10 Billion Racial Discrimination Lawsuit Just Days Before Trial
CHICAGO, IL – Media mogul Byron Allen and the fast-food giant McDonald’s have reached a settlement in a contentious $10 billion lawsuit that accused the corporation of racial discrimination in its advertising practices. The agreement, the financial terms of which remain confidential, was announced on June 13, 2025, just days before the case was scheduled to go to a jury trial in Los Angeles.
Allen, the owner of Allen Media Group which includes The Weather Channel and Entertainment Studios Networks, filed the lawsuit in May 2021. He alleged that McDonald’s systematically excluded Black-owned media from its general advertising budget, relegating them to a smaller, secondary “African American tier.” This practice, Allen argued, amounted to “racial stereotyping” and denied his networks the opportunity to compete for a fair share of the company’s substantial advertising expenditures. The lawsuit contended that Allen’s networks, which have broad viewership, were not given the same consideration as white-owned media with similar or even smaller audiences.
In a joint statement, both parties signaled a move toward a renewed business relationship. McDonald’s, while admitting no wrongdoing, stated it would increase its advertising with Allen’s companies.
“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,” a McDonald’s spokesperson said.
Allen, in his statement, acknowledged a newfound understanding of McDonald’s advertising structure. “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,” said Allen. “Our differences are behind us, and we look forward to working together.”
This settlement marks another significant milestone in Allen’s long-standing campaign to hold major corporations accountable for what he describes as discriminatory practices against Black-owned businesses. He has previously engaged in and settled similar disputes with other major media and communication companies, including Comcast, DirecTV, and Charter Communications.
In 2020, Allen’s lawsuit against Comcast reached the Supreme Court. The case revolved around Allen’s claim that racial discrimination was a factor in Comcast’s refusal to carry his entertainment channels. While the Supreme Court set a high bar for proving such claims, the case was ultimately settled, leading to distribution agreements for several of Allen’s networks on Comcast’s Xfinity platform.
The resolution of the McDonald’s lawsuit is seen by industry observers as a testament to Allen’s persistent efforts to challenge the advertising and media landscape, advocating for greater equity and inclusion for Black-owned media enterprises. While the specific financial outcome remains under wraps, the settlement averts a potentially damaging public trial for McDonald’s and allows both parties to move forward with a commercial relationship.
About Author
