Allen Media Group chief Byron Allen has reached a settlement in the $10 billion lawsuit that he filed in 2021 alleging the fast food giant discriminated against Black-owned media companies in its TV advertising expenditures.
Terms of the settlement were not disclosed. The deal averts a trial that had been scheduled to begin in federal court in Los Angeles next month. The sides announced the agreement in a joint statement issued late Friday.
“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 said in a statement. “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.”
Allen has largely prevailed in a series of civil rights lawsuits filed against major players in media and advertising over distribution deals for his channels and ad sales. Allen reached a settlement with Comcast in 2020 after a long-running litigation that went to the U.S. Supreme Court to rule on one aspect of the case. He also reached settlements with DirecTV and Charter Communications.
Allen started his company more than 30 years ago with a single talk show that he hosted. Today, he owns numerous lifestyle channels, the Weather Channel and digital outlets including The Grio and HBCU Go. He has invested in TV stations during the past 10 years but earlier this month tapped investment bank Moelis & Co. to help him sell the collection of 28 network affiliate stations in medium and small markets across the country. (variety)
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