A federal judge has ruled that Byron Allenâs $10 billion racial discrimination lawsuit against McDonaldâs Corporation will proceed to trial. The lawsuit, filed by Allen in 2021, alleges that McDonaldâs engaged in âracial stereotypingâ by refusing to allocate ad dollars to Black-owned media companies.
According to court documents, United States District Judge Fernando M. Olguin determined that a jury should hear Allenâs claims, rejecting McDonaldâs motion for a summary judgment. The lawsuit argues that McDonaldâs excluded Allenâs media properties, including Entertainment Studios and The Weather Channel, from its general-market ad budget. Instead, these outlets were relegated to McDonaldâs âAfrican American tier,â a category with significantly smaller ad budgets. Allen claims this practice cost his companies millions in potential annual revenue.
Allen, a prominent media entrepreneur and advocate for diversity, asserts that McDonaldâs actions are part of a larger pattern of racial discrimination. He cited lawsuits filed by McDonaldâs Black executives and franchisees as further evidence of systemic bias. âWe have overwhelming evidence,” Allen stated, calling on McDonaldâs CEO Chris Kempczinski to resign.
McDonaldâs has denied the allegations, maintaining that its advertising decisions are based on business strategy, audience alignment, and media ratings. A spokesperson for the fast-food giant labeled the claims as âbaseless.â
The lawsuit is being pursued under Section 1981 of the Civil Rights Act of 1866, a Reconstruction-era law designed to prevent racial discrimination in contracts.
This ruling is seen as a significant step toward accountability in corporate America, sparking broader discussions around racial equity and representation in advertising. The case will now proceed in a Los Angeles federal court, where a jury will weigh the evidence.
Keywords: Byron Allen, McDonald’s discrimination, $10 billion lawsuit, racial discrimination trial, media mogul lawsuit
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