Overview

• The agreement resolves the $10 billion federal lawsuit and a related $100 million state case over alleged racial stereotyping in McDonald’s advertising
• Under the deal McDonald’s will buy advertising from Entertainment Studios Networks and The Weather Group at market value, aligning with its commercial strategy
• McDonald’s denied any wrongdoing in the confidential settlement that averts a July trial in Los Angeles federal court
• Allen’s companies welcomed the outcome as a renewal of their business relationship with McDonald’s
• Byron Allen’s media firms are under pressure from cord-cutting and ad revenue declines and have enlisted Moelis & Co. to explore selling local TV stations