Byron Allen Settles $10 Billion Lawsuit Against McDonald’s Over Advertising

LOS ANGELES, CA — Byron Allen, the CEO of Allen Media Group, reached a settlement in his $10 billion lawsuit against McDonald's on June 13, 2025. The lawsuit, filed in 2021, alleged that McDonald’s discriminated against Black-owned media companies in its television advertising expenditures.

The terms of the settlement remain undisclosed, but the agreement prevents a trial scheduled to begin next month in federal court. The companies released a joint statement late Friday announcing the settlement.

McDonald’s stated, “We are pleased that Mr. Allen has come to appreciate McDonald’s unwavering commitment to inclusion, and has agreed to refocus his energies on a mutually beneficial commercial arrangement.” The company emphasized its model of collaboration and respect among its partners.

In his lawsuit, Allen claimed that McDonald’s practice of purchasing advertising time targeting Black audiences was discriminatory. He argued that the funds allocated for this purpose were less than those set aside for broader audience engagement through larger networks. Allen’s complaint was supported by his subsidiaries, Entertainment Studios and Weather Group.

“We are pleased to find a resolution that maintains our business relationship,” Allen stated. He acknowledged the litigation clarified many preconceptions and expressed appreciation for McDonald’s investment in Black-owned media.

Judge Fernando Olguin previously ruled that the case warranted a full hearing, suggesting that McDonald’s may have violated civil rights laws by maintaining separate advertising tiers for Black-targeted content. Though the settlement indicates a resolution, it is unclear if it includes changes to McDonald’s advertising practices.

Allen, who founded his media company over 30 years ago, has had legal success in similar civil rights lawsuits, including settlements with Comcast, DirecTV, and Charter Communications. More recently, he has sought investment banking support to expand into smaller media markets.

The settlement marks a significant moment in the ongoing dialogue about representation and equity in the media industry.