This $10 Billion McDonald's Lawsuit Was Just Dismissed

Millionaire Byron Allen knows what's up when it comes to running a media empire. Allen is the founder and owner of Entertainment Studios, which owns and runs dozens of television shows, stations, and channels, including The Weather Channel (via Variety). According to Afrotech, Allen's financial approach to operations is as unique as it is lucrative. Allen permits free licensing of television shows he owns instead of charging the networks fees. In turn, he's able to sell 50% of his own advertising, which can get pretty lucrative.

In addition to his professional career, Allen has also been spotlighted for his advocacy for political and police reform, including work with the Black Lives Matter movement and for laying out a step-by-step guide for how to achieve national peace, as in an op-ed published in Deadline.

In May 2021, Mashed reported that Allen had sued McDonald's for unfair and discriminatory practices, specifically regarding its advertising. Byron claimed that not enough funds were distributed toward working with his media companies specifically because they are black-owned. Just recently, the lawsuit was ousted by United States District Judge Fernando Olguin out of Los Angeles (via Reuters). But why was it dropped?

According to Reuters, Judge Olguin stated that Allen's companies "did not offer enough factual evidence to show that McDonald's 'intentionally and purposefully discriminated against them.' " He further stated that Allen's companies did not show that they had made significant efforts to advertise with McDonald's or that they had faced unfair treatment. In a statement, Allen's lawyer claimed that they would be "adding more details to the complaint" after Olguin said that they would be permitted to file an "amended complaint." Allen's lawyer also anticipated that the case would go to trial.

Per Variety, Allen has a history of being persistent in legal situations, having once taken a $20 million discrimination case against Comcast to the Supreme Court (though Deadline reports he didn't win). Allen condemned McDonald's "horrible, racist culture" last month, but McDonald's lawyer Loretta Lynch claimed, "This case is about revenue, not race. We believe there is no evidence supporting this meritless case." In the meantime, McDonald's has announced a plan to increase advertising with Black-owned entertainment companies to 5% by 2024 (via Reuters).