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.”

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