Byron Allen’s $10 Billion Racial Discrimination Lawsuit Against McDonald’s Moves Forward

Media mogul Byron Allen’s $10 billion racial discrimination lawsuit against McDonald’s has cleared a major hurdle. On Tuesday (Dec. 3), U.S. District Judge Fernando Olguin ruled that the case can proceed to trial, according to The Hollywood Reporter.

Allen, the founder of Allen Media Group and owner of The Weather Channel, alleges that McDonald’s discriminated against Black-owned media companies by placing them in lower advertising tiers intended only for content targeted at Black audiences.

The lawsuit argues that this practice effectively excluded his networks from the fast-food giant’s general advertising market, violating civil rights laws.

Judge Olguin acknowledged that the decision was a “close call” but determined there was sufficient evidence to allow the case to move forward. He stated that McDonald’s “may have violated civil rights laws” by limiting Byron Allen’s networks to “meager advertising tiers.”

The ruling follows an earlier dismissal of the lawsuit in February 2024. At that time, Allen’s legal team vowed to appeal, citing California’s Civil Code Section 1711, which prohibits companies from making false statements to the public.

McDonald’s Response

In a statement, McDonald’s denied the allegations and maintained that their advertising decisions were based on business strategy rather than discrimination.

“This ruling simply means that neither party met the high standard for dismissal,” McDonald’s said. “We are prepared to show that this case is utterly baseless. McDonald’s invested in media properties that aligned with the company’s business strategy and, like any other rational business, declined to invest in those that had low ratings or failed to reach the company’s target audiences.”

Despite McDonald’s rebuttal, Allen expressed confidence in his case, stating that he has “overwhelming evidence” of discrimination. He also called for accountability within the company, demanding the resignation of McDonald’s CEO Chris Kempczinski.

“It is time for the McDonald’s Board of Directors, stockholders, and civil rights organizations nationwide to call for the resignation of CEO Chris Kempczinski, who was caught sending racist text messages about Black and Hispanic people,” Byron Allen stated.

Allen’s lawsuit is part of his broader efforts to hold corporations accountable for fair representation and investment in Black-owned media. The media entrepreneur has consistently advocated for equity in the advertising industry, arguing that companies must do more to support diverse content creators.

Beyond the lawsuit, Allen continues to make headlines for his ambitious business moves. In January 2024, he placed a $30 billion bid to acquire Paramount Global, a deal that would also require taking on the company’s $15 billion debt.