- Allen’s lawsuit claims McDonald’s failed to increase advertising with Black-owned media companies as promised
- Judge dismisses the lawsuit, stating the deadline for McDonald’s to fulfill their promise has not passed
- McDonald’s celebrates the victory and plans to collaborate with diverse-owned partners
Introduction: Byron Allen’s Legal Battle with McDonald’s
Byron Allen, the publicized bidder for Paramount Global, has suffered a significant setback in his legal fight against McDonald’s. Allen filed a $100 million lawsuit against the fast-food giant, accusing them of not fulfilling their promises to increase advertising spending with Black-owned media companies. However, a Los Angeles Superior Court judge recently dismissed Allen’s lawsuit, stating that McDonald’s still has time to fulfill their commitment. This decision deals a significant blow to Allen’s case and highlights the ongoing legal battle between the two parties.
Allen’s Allegations: Broken Promises and Discrimination
Allen’s Weather Group, LLC and Plaintiff Entertainment Studios Networks, Inc claimed that McDonald’s made false promises to increase advertising spending with Black-owned media companies. In May 2021, McDonald’s unveiled a four-year plan to raise its national media spending with Black-owned companies from 2% to 5%. However, Allen’s companies alleged that McDonald’s only focused on issuing press releases without actually following through on their commitment.
Judge’s Decision: Dismissing the Lawsuit
Judge Mel Red Recana ruled in favor of McDonald’s, stating that Allen’s evidence failed to demonstrate that McDonald’s had not performed or intended not to perform at the time the alleged promise was made. The judge pointed out that the deadline for McDonald’s to fulfill their promise had not yet passed, as stated in the company’s May 2021 press release. The court emphasized that it was premature to conclude that McDonald’s would not fulfill its commitment, especially considering their Vice President’s affirmation of their plans to increase spending in the future.
McDonald’s Response: Celebrating the Victory
McDonald’s reacted strongly to the court’s decision, considering it a confirmation that Allen’s lawsuit was frivolous and part of a smear campaign. The company emphasized its commitment to collaboration with diverse-owned partners and advancing inclusion and diversity efforts. McDonald’s also highlighted that Allen would be responsible for paying their legal fees.
The recent court ruling dismissing Byron Allen’s $100 million lawsuit against McDonald’s deals a significant blow to Allen’s legal battle. While Allen’s team plans to appeal the decision, McDonald’s celebrated the victory and reiterated its commitment to diversity and inclusion. This dismissal does not affect Allen’s separate $10 billion racial-stereotyping lawsuit against McDonald’s, which is still pending in federal court. As this legal battle unfolds, McDonald’s will continue to focus on its collaboration with diverse-owned partners, and Allen will pursue his claims in court.