Byron Allen and McDonald's Reach Settlement in Advertising Dispute

In 2021, Byron Allen filed a lawsuit against McDonald's, alleging the company discriminated against Black-owned media companies in its TV advertising expenditures. Allen argued that McDonald's practice of buying ad time on media outlets targeting Black viewers was discriminatory because those purchases were made from a limited budget.

McDonald's initially defeated the complaint in court, but Allen appealed, leading to the eventual settlement. While the specific terms remain confidential, the agreement ensures that McDonald's will continue to allocate advertising dollars to Allen's Entertainment Studios Networks (ESN). This resolution comes amidst financial pressures impacting media companies, including Allen's, due to cord-cutting and advertising declines. Allen had recently enlisted Moelis & Co. to explore selling his local TV stations.

Allen has a history of filing civil rights lawsuits against major media and advertising players, securing settlements with Comcast, DirecTV, and Charter Communications.

The lawsuit claimed that McDonald's discriminated against Black-owned media companies in its advertising spending.

The specific terms were not disclosed, but McDonald's will continue buying ads from Byron Allen's Entertainment Studios Networks (ESN).

No, McDonald's did not admit any wrongdoing as part of the settlement.

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