Media mogul Byron Allen's $10 billion racial discrimination lawsuit against McDonald's will proceed to trial after a federal judge handed down his decision.
A federal judge in California has ruled that media mogul Byron Allen's $10 billion racial discrimination lawsuit against McDonald's may proceed to trial. In what United States District Judge Fernando M. Olguin said was a "close call," the court found that Allen's claims that the fast-food chain engaged in "racial stereotyping" by not advertising with Black-owned media would best be addressed by a jury.
Allen accused McDonald's of relegating his Entertainment Studios Networks, Inc. and Weather Group LLC, which owns the Weather Channel, to an "African American tier" with a separate Black-focused ad agency and much smaller ad budget, depriving them of tens of millions of dollars of annual revenue.
The lawsuit was filed in 2021 on the same day McDonald's announced it would boost its national ad spending on Black-owned media to 5% from 2% by 2024, and also increase spending on Hispanic-, Asian-American-, women- and LGBTQ-owned platforms.Allen welcomed Olguin's decision in a statement to theGrio.
We have overwhelming evidence against McDonald’s — who has been sued by its Black executives, Black franchisees, and their global head of security — for racial discrimination," Allen said. "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.
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