Byron Allen just added another big win to his long list of business accomplishments.
According to a news release, the media mogul filed suit against McDonald’s for discriminatory ad-spend practices. Although the fast-food conglomerate moved to have the suit dismissed, a ruling declared that the $10 billion case will move forward.
The Allen Media Group (AMG) will now go on and try to prove in court that McDonald’s violated civil rights laws by purposely choosing not to advertise on the many platforms that fall under the AMG umbrella including The Weather Channel.
The lawsuit was initially filed on May 20, 2021 against McDonald’s Corporation (“McDonald’s”) and states that the entity was raciallu discriminated against through “a pattern of racial stereotyping and refusals to contract in violation of the Civil Rights Act of 1866, 42 U.S.C. § 1981, and the California Aruh Civil Rights Act, Cal. Civil Code § 51.5.”
On September 16, 2022, defendant McDonald’s was denied a Motion to Dismiss by Judge Fernando M. Olguin of the United States District Court for the Central District of California which allow the suit to be brought up in court May 2023.
The lawsuit points out that of approximately $1.6 billion of McDonald’s annual advertising budget, the corporation spends less than approximately $5 million each year on Black-owned media. The suit also claims that it has refused to advertise on Entertainment Studios networks or The Weather Channel since Allen acquired the network in 2018.
“This is about economic inclusion of African American-owned businesses in the U.S. economy,” said Byron Allen, Founder/Chairman/CEO of Allen Media Group in a news release. “McDonald’s takes billions from African American consumers and gives almost nothing back. The biggest trade deficit in America is the trade deficit between White corporate America and Black America, and McDonald’s is guilty of perpetuating this disparity. The economic exclusion must stop immediately. McDonald’s CEO Chris Kempczinski got caught sending racist text messages and McDonald’s has been sued by the Black franchisees, the Black executives, the Black employees, the Black vendors, and 52 percent of the McDonald’s stockholders recently voted to hire a third-party firm to investigate McDonald’s for civil rights violations. This is historic!!! The overt and systemic racism at McDonald’s is undeniable and indefensible. McDonald’s CEO Chris Kempczinski, McDonald’s Chief Marketing Officer Morgan Flatley, and the Board of Directors must be fired.”
