McDonald’s reached a settlement in the $10 billion lawsuit brought by Byron Allen‘s Allen Entertainment Studios, in which the media mogul accused the fast food company of discriminating against Black-owned media companies.
Allen’s companies and McDonald’s released a joint statement on Friday, revealing that they’d come to “an agreement to settle pending litigation between them.” At the tailend of last year, U.S. District Judge Fernando Olguin found that McDonald’s may have violated federal and state civil rights laws by keeping a separate advertising tier for companies who create content target toward Black audiences.
“We are pleased to find a resolution that maintains our business relationship,” Allen’s Entertainment Studios and The Weather Channel said in a statement. “During the course of this litigation, many of our preconceptions have been clarified, and we acknowledge McDonald’s commitment to investing in Black-owned media properties and increasing access to opportunity. Our differences are behind us, and we look forward to working together.”
The news comes after McDonald’s was set to go to trial for the lawsuit. Financial terms of the deal were not disclosed.
Later in the release, it was noted that “The parties reached a confidential commercial agreement whereby McDonald’s will continue to purchase advertising from ESN in a manner that aligns with its advertising strategy and commercial objectives and ESN will dismiss its lawsuit against McDonald’s in the United States District Court for the Central District of California.” Additionally, they noted, “Under the terms of the agreement, which are confidential, McDonald’s is not admitting any wrongdoing, and the ads sold will, as per all such commercial deals, be priced at market value.
“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 that is consistent with other McDonald’s supplier relationships,” McDonald’s USA, LLC said. “Our company’s unique three-legged stool model relies on mutual respect, and we look forward to ESN’s contributions to the betterment of our system.”
