Media mogul’s $10B McDonald’s discrimination suit to go to trial, federal jury rules
Allen Media Group’s founder, chairman and CEO demonstrates the realization of the American dream of ‘Making Money.’
A California federal judge has ruled that McDonald’s Byron Allen’s $10 billion racial discrimination lawsuit can proceed to trial.
In what U.S. District Judge Fernando M. Olguin called a “close call,” the court found that Allen’s claims that the fast-food chain engaged in “racial bias” by not advertising in black media would be better handled by a jury.
“At the very least, this is the type of case where ‘the trial court is permitted, in its discretion, to deny even a well-supported motion for summary judgment, if it believes the case would benefit from a full trial,'” Olguin. cut to 25 pages.
| A ticker | Security | Finally | Change | Change % |
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| MCD | MCDONALD’S CORP. | 292.44 | -1.80 |
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The lawsuit alleges that McDonald’s violated state and California civil rights laws by depriving Allen’s networks of “most” of its advertising dollars.
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Comedian and television producer Byron Allen, founder and CEO of Entertainment Studios, sued McDonald’s for racism. (Robert Hanashiro, USA)
Allen accused McDonald’s of undermining Entertainment Studios Networks, Inc. and Weather Group LLC, which owns the Weather Channel, in the “African American segment” with a separate black-focused ad company and a much smaller ad budget, robbing them of tens of millions. of annual revenue dollars.
The lawsuit alleges that Allen and his companies had asked to be clients of McDonald’s marketing giant, but were turned away from the small Black company only because Allen is Black, which Entertainment Studios called “blatant and dangerous discrimination.”
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The McDonald’s logo is seen near the restaurant in Santa Monica, United States on November 13, 2023. (Jakub Porzycki/NurPhoto via Getty Images/Getty Images)
According to the complaint, nearly 40 percent of McDonald’s customers are black, but the company spent less than $5 million of its $1.6 billion advertising budget in 2019 on black-owned media.
“McDonald’s, like most corporate America these days, publicly touts its commitment to diversity and inclusion, but this is nothing more than rhetoric,” the complaint said.
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Icon Award Honoree Byron Allen speaks on stage during the Culture Creators 4th Annual Innovators & Leaders Awards Brunch at The Beverly Hilton Hotel on June 22, 2019, in Beverly Hills, California. (Jerritt Clark/Getty Images for Culture Creators)
The lawsuit was filed in 2021 on the same day that McDonald’s announced it would increase its national ad spending on black media to 5% from 2% by 2024, and increase spending on Hispanic-, Asian-American-, women- and LGBTQ. managed platforms.
Allen welcomed Olguin’s decision in a statement to the Grio.
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“We have overwhelming evidence against McDonald’s – accused by its Black executives, black businessmen, and head of security around the world – of racism,” Allen said. “It’s time for McDonald’s board of directors, shareholders, and national civil rights groups to call for the ouster of CEO Chris Kempczinski, who was caught sending anti-Black and Hispanic messages.”
McDonald’s did not immediately respond to a request for comment outside of business hours.
Reuters contributed to this report.
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