McDonald’s Settles Byron Allen’s $10 Billion Racial Bias Lawsuit
McDonald’s has settled a $10 billion lawsuit by Byron Allen, who accused the company of racial bias by excluding Black-owned media from much of its advertising budget, Reuters reports.
The settlement between McDonald’s and two of Allen’s companies, Entertainment Studios Networks and the Weather Group, was announced on June 13, 2025. Financial details have not been disclosed and McDonald’s denies any wrongdoing.
Byron Allen’s lawsuit against McDonald’s
Allen’s lawsuit claims that McDonald’s created a separate “African American tier” with significantly lower advertising budgets for Black-owned media. He argues that this systemic exclusion costs his companies, Entertainment Studios and The Weather Channel, millions of dollars in revenue annually.
He also accused McDonald’s of lying in 2021 after it pledged to promote national ad spending with those media to 5% from 2% by 2024. He said he relied on that pledge when seeking business from McDonald’s, but he was rejected, and that Allen Media Group represented more than 90% of Black-owned media. Allen’s networks include The Weather Channel and Cars.TV, Comedy.TV, ES.TV, Justice Central, MyDestination.TV, Pets.TV and Recipe. TV.
Los Angeles Superior Court Judge Mel Recana dismissed Allen’s lawsuit in 2024 but Allen appealed.
The Settlement
The settlement was announced on June 13, 2025 but the terms remain confidential. The settlement averts a trial that was scheduled for July 15 in Los Angeles federal court. Claims arising in Allen’s related $100 million lawsuit against McDonald’s in the Los Angeles Superior Court will also be settled.
The fast-food company said it will buy ads “at market value” from Allen’s companies in a manner that aligns with its advertising strategy and commercial objectives.”
Image: Jurij Kenda/Black Enterprise
