Byron Allen Reaches Agreement in $10 Billion Lawsuit Against McDonald’s
Byron Allen, the head of the Allen Media Group, has reached an agreement in a $10 billion lawsuit he filed against McDonald’s in 2021. The lawsuit claimed that the fast-food giant discriminated against media companies in their TV advertising expenditure.
Background of the Lawsuit
The lawsuit depended on Allen’s claim that McDonald’s habit of buying advertising time in media that aimed at black audiences is discriminatory. This practice was made from a budget that was provided for what the complaint called the "African-American tier". Allen’s complaint argued that this practice was harmful to black media owners, as this tier made more limited dollars available than the general tier that the company used to reach broad-based audiences in the largest networks and platforms.
Terms of the Agreement
The terms of the agreement were not announced. However, the deal puts an end to a process that was set to begin next month before a federal court in Los Angeles. In a joint statement, the teams announced the agreement, which was submitted late Friday.
Reaction from McDonald’s and Allen Media Group
McDonald’s USA released a statement saying, "We are pleased that Mr. Allen and McDonald’s have come to a mutually beneficial commercial agreement that is consistent with other supplier relationships at McDonald’s." Byron Allen also released a statement, saying, "We are pleased to have found a solution that maintains our business relationship. In the course of this legal dispute, many of our concerns were addressed, and we recognize McDonald’s commitment to investing in black-owned media properties and providing access to opportunities."
Impact of the Settlement
It is unclear whether the settlement contains major changes to the advertising practices of the fast-food giant. However, the settlement is a significant development in the case, which had been set to go to trial next month. In December, Allen’s complaint survived an application to dismiss McDonald’s, with the US district judge Fernando M. Olguin believing that it was a "close call" that "would benefit from a complete hearing".
Byron Allen’s History of Lawsuits
Byron Allen has largely prevailed in a number of civil rights lawsuits that he has filed against major players in the media and advertising industries over sales practices for their channels and advertising sales. After a long-term legal dispute, he reached an agreement with Comcast in 2020 to settle one aspect of the case. He has also reached settlements with DirecTV and Charter Communications.
About Byron Allen and Allen Media Group
Byron Allen founded his company over 30 years ago with a single talk show that he hosted. Today, he has numerous lifestyle channels, the Weather Channel, and digital branches such as Grio and HBCU Go. He has invested in television stations over the past 10 years, but at the beginning of this month, he hired the investment bank Moelis & Co. to help him sell his collection of 28 network affiliate stations in medium and small markets across the country.
