McDonald’s resolved a $10 billion dispute with Byron Allen’s Allen Entertainment Studios over allegations that the fast-food chain had discriminated against Black-run media businesses, as claimed by the media tycoon.
On a Friday, Allen’s businesses and McDonald’s announced they had reached an agreement to resolve the ongoing legal dispute between them. Toward the end of last year, U.S. District Judge Fernando Olguin determined that McDonald’s potentially breached federal and state civil rights laws by maintaining a distinct advertising tier for companies producing content aimed at Black audiences.
Allen’s Entertainment Studios and The Weather Channel expressed satisfaction in reaching a solution that preserves our business partnership. Throughout the legal process, our initial assumptions have been made clearer, and we acknowledge McDonald’s dedication towards investing in media properties owned by Black entrepreneurs and expanding opportunities. We put our disagreements aside now, eagerly looking forward to collaborating again.
The news follows as McDonald’s prepared for a court trial regarding the lawsuit, with details about the monetary aspects of the agreement remaining undisclosed.
At a later point in the announcement, it became clear that “The involved parties have privately negotiated a business agreement with commercial secrecy, enabling McDonald’s to carry on purchasing advertising from ESN according to their own promotional strategy and commercial goals. In return, ESN has agreed to drop its lawsuit against McDonald’s in the U.S. District Court for the Central District of California. It was also mentioned that “The specific details of this agreement are confidential, meaning McDonald’s does not acknowledge any wrongdoing, and the ads will be priced at market value, as with all similar business transactions.
McDonald’s USA, LLC expressed their satisfaction that Mr. Allen now recognizes McDonald’s dedication to inclusivity. They have decided to collaborate again, reinforcing a partnership that aligns with other McDonald’s business alliances. In addition, McDonald’s stated their three-legged stool model is built on mutual respect, and they are excited about ESN’s potential for improving their system.
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2025-06-14 04:54