McDonald's agrees to resolve the $10 billion racial discrimination lawsuit filed by Byron Allen.
Fast-Food Giant McDonald's and Media Tycoon Byron Allen Settle $10 Billion Lawsuit
After a tense legal battle, fast-food titan McDonald's and media mogul Byron Allen have called a truce, putting an end to their $10 billion lawsuit over accusations of racial stereotyping in advertising practices, according to reports from Reuters. The settlement, announced on June 13, 2025, put the brakes on a scheduled federal trial in Los Angeles, which was slated to begin on July 15. This settlement also covers a related $100 million lawsuit Allen brought against McDonald’s in the Los Angeles Superior Court.
Byron Allen's Lawsuit Against McDonald's
Allen's lawsuit claimed that McDonald's deliberately established a separate “African American tier” with substantially reduced advertising budgets for Black-owned media. Allen argued that this systematic exclusion caused his companies, Entertainment Studios, and The Weather Channel, to lose millions in annual revenue.
He also accused McDonald's of falsifying claims in 2021 when the fast-food company promised to boost national ad spending with Black-owned media from 2% to 5% by 2024. Allen argued that he depended on this promise while seeking business from McDonald's but was ultimately shut out. He contended that Allen Media Group comprised more than 90% of Black-owned media. Allen's networks include The Weather Channel, Cars.TV, Comedy.TV, ES.TV, Justice Central, MyDestination.TV, Pets.TV, and Recipe. TV.
McDonald's asserted that it would purchase ads "at market value" from Allen's companies, aligning with its advertising strategy and commercial objectives.
Allen's TV Station Sale
In a separate development, Allen revealed he is selling local television stations owned by his Allen Media Group (AMG). Moelis & Co. is handling the deal. Allen stated that the sale was necessary to pay down AMG's debt. Over the past six years, the company has spent over $1 billion acquiring stations with the ambition of becoming the leading independent television operator in the U.S. Its portfolio currently includes 28 stations affiliated with ABC, NBC, CBS, and Fox, operating in 21 US markets.
Image: Jurij Kenda/Black Enterprise
[1] Allen's $10 billion racial discrimination lawsuit against McDonald's settled[2] Byron Allen reaches settlement with McDonald's in $10 billion racial discrimination lawsuit[3] McDonald's Said to Settle $10 Billion Race Bias Suit by Media Tycoon[4] Byron Allen Sells TV Stations as Part of Effort to Pay Down Debt[5] Byron Allen Settles Lawsuit with McDonald's – Details Remain Undisclosed
In the settlement announced on June 13, 2025, media tycoon Byron Allen and fast-food giant McDonald's resolved a $10 billion lawsuit over accusations of racial stereotyping in advertising practices, a significant event in the world of general-news and business. The settlement also covers a related $100 million lawsuit Allen brought against McDonald’s in the Los Angeles Superior Court. Simultaneously, Allen announced the sale of local television stations owned by his Allen Media Group to pay down its debt, impacting the finance and business sectors.
