McDonald’s Is Facing A $10B Lawsuit For Racial Discrimination—Everything We Know So Far

McDonald’s has to face— and the company will have to defend itself against— a $10 billion lawsuit from media mogul Byron Allen. This, as CNN reports, is over an allegation that the fast food giant does not advertise with Black-owned media companies. Last week, a federal court ruled that Allen and his company, Allen Media Group, can attempt to prove in court that the fast food giant violated civil rights laws.

According to a recent press release, Allen indicated that only about $5 million of McDonald’s $1.6 billion annual advertising budget actually goes toward Black-owned media. He added that the company has “refused to advertise” on his networks. This includes the Weather Channel and Comedy TV.

Allen is also accusing the popular chain of relegating his TV networks to an “African American tier.” This, he alleges, has a much smaller ad budget and deprives the channels of millions in annual revenue. In the press release, Allen wrote, “This is about economic inclusion of African American-owned businesses in the US economy.”

He continued, writing, “McDonald’s takes billions from African American consumers and gives almost nothing back. The biggest trade deficit in America is the trade deficit between White corporate America and Black America, and McDonald’s is guilty of perpetuating this disparity.” Loretta Lynch, lawyer for McDonald’s said in response that the evidence will indicate that the company does not discriminate. Lynch, who was US attorney general during the Obama administration said that Allen’s claims are “meritless.”

Lynch, who is now in private practice with law firm Paul Weiss, said, “Their complaint is about revenue, not race, and plaintiffs’ groundless allegations ignore both McDonald’s legitimate business reasons for not investing more on their channels and the company’s long-standing business relationships with many other diverse-owned partners.”

McDonald’s announced earlier this year that the company will increase advertising with Black-owned companies from 2% to 5% by 2024. The company, CNN writes, has a “troubled history with lawsuits involving race.” This was notable in 2021, when McDonald’s settled a lawsuit that was filed by a Black franchise owner.

He alleged that the company pressured him toward less profitable restaurants in lower-income, predominantly Black neighborhoods, because of his race. “Discrimination has no place at McDonald’s,” the fast food chain said in December of last year. “While we were confident in the strength of our case, this resolution aligns with McDonald’s values and enables us to continue focusing on our commitments to the communities that we serve.”