*A federal judge earlier this week Okayed a $10 billion racial discrimination lawsuit filed by Byron Allen against McDonald’s to proceed. This was after the judge rejected a motion to dismiss the suit.
Allen is the founder and chairman/CEO of Allen Media Group, which sued the fast-food giant in May. In his complaint, Allen alleges that McDonald’s did not allocate a fair amount of the money to the Black-owned media outlets as it disbursed massive advertisement budgets.
In his ruling, U.S. District Judge Fernando Olguin decided that the case has merit. Allen is seeking $10 billion in damages.
The suit further alleges that McDonald’s has refused to contract with African-American media fairly due to racial stereotyping.
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The evidence is in an advertisement structure with low, bad pricing for “African Americans” compared to the general audience.
The advertising structure is based on a tier, which is not the same for African Americans as for the “general market.”
According to Allen, the structure produces “separate and unequal tracks for Black-owned media companies to earn advertising revenue.”
Allen has also maintained that his television networks have general market appeal and African American audiences are not the primary target.
“This is about economic inclusion of African American-owned businesses in the U.S. economy,” Allen said after the ruling. “McDonald’s takes billions from African American consumers and gives almost nothing back.”
He added: “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. The economic exclusion must stop immediately.”
McDonald’s released a statement that read, “Together with our Owner/Operators, we have doubled down on our relationships with diverse-owned partners. This includes increasing our spend with diverse-owned media from 4% to 10% and with Black-owned media from 2% to 5% of total national advertising over the next four years. Once we receive the complaint, we will review and respond accordingly.”
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