Byron Allen's $10 Billion Discrimination Lawsuit Against McDonald's Moves to Trial
A federal judge ruled that claims of racial discrimination in McDonald's advertising practices warrant a jury's evaluation.
- U.S. District Judge Fernando M. Olguin determined that Byron Allen's allegations of racial discrimination by McDonald's merit a jury trial, citing sufficient evidence for consideration.
- Allen accuses McDonald's of relegating his media companies, including Entertainment Studios and The Weather Channel, to a smaller advertising budget designated for Black-owned media, limiting their revenue opportunities.
- The lawsuit alleges that McDonald's spent less than $5 million of its $1.6 billion advertising budget in 2019 on Black-owned media, despite Black customers comprising about 40% of its customer base.
- McDonald's defends its advertising practices, stating that decisions were based on business strategy and audience reach, and denies allegations of racial stereotyping or discrimination.
- The case, initially filed in 2021, also references controversial text messages by McDonald's CEO Chris Kempczinski, which Allen claims reflect a broader culture of racial bias within the company.