McDonald’s settles lawsuit over advertising spending
Written by Black Hot Fire Network Team on January 27, 2026
On June 13, 2025, McDonald’s reached a settlement in a $10 billion lawsuit filed by media entrepreneur Byron Allen. The lawsuit alleged that the fast-food chain engaged in racial stereotyping by excluding Black-owned media from its advertising budget.
The settlement avoids a trial scheduled for July 15 in Los Angeles federal court and resolves a related $100 million lawsuit filed in Los Angeles Superior Court. Terms of the agreement are confidential.
The Lawsuit and Allegations
Byron Allen’s companies, Entertainment Studios Networks and The Weather Group, initiated the lawsuit against McDonald’s. Allen accused the company of falsely categorizing Entertainment Studios as a media outlet producing content solely for Black viewers, limiting its access to McDonald’s general advertising budget. He also alleged that McDonald’s misrepresented its commitment to increase national ad spending with Black-owned media from 2% to 5% by 2024. Allen stated he relied on this pledge when pursuing business with McDonald’s.
Settlement Details
McDonald’s, based in Chicago, denied any wrongdoing in agreeing to the settlement. The company stated it will purchase advertising from Allen’s companies “at market value” in a manner consistent with its advertising strategy. Allen’s companies acknowledged McDonald’s commitment to investing in Black-owned media and increasing access to opportunity, stating that their differences were behind them.
Allen Media Group
Allen Media Group encompasses a variety of networks, including The Weather Channel, Cars.TV, Comedy.TV, ES.TV, Justice Central, MyDestination.TV, Pets.TV, and Recipe.TV. Allen asserted that Allen Media Group represents more than 90% of Black-owned media.
