*Byron Allen’s $10 billion discrimination lawsuit against McDonald’s is set to go to trial after a federal judge ruled there is sufficient evidence to suggest the company may have violated civil rights laws.
The lawsuit alleges McDonald’s limited advertising on Allen’s networks to lower-tier categories meant for content aimed at Black audiences. We reported earlier that Allen, founder and chairman/CEO of Allen Media Group, sued the fast-food giant in May. In his complaint, he 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. The suit further states that McDonald’s has refused to contract with African-American media fairly due to racial stereotyping.
U.S. District Judge Fernando Olguin ruled in 2022 that the lawsuit could proceed because the case had merit. This was after he rejected a motion to dismiss the suit. Allen is seeking $10 billion in damages.
Last year, Allen’s Entertainment Studios Networks Inc and Weather Group LLC filed a second lawsuit (for fraud) against McDonald’s Corp, claiming the burger chain “lied” in May 2021 when it vowed to boost national ad spending with Black-owned media.
Per the news release: “According to the lawsuit, McDonald’s made a commitment in 2021 to spend 2 percent of its billion-dollar advertising budget on Black-Owned Media in 2021, escalating to 5 percent by 2024.” Per the lawsuit, this “plan” was and is a lie.
The lawsuit seeks damages over $100 million for fraud/false promise, in violation of Cal. Civ. Code § 1711, an anti-fraud law against making false promises.
“During the Black Lives Matter movement, hundreds of corporations made pledges to Black America, and unfortunately, they have not lived up to them,” said Allen.
“McDonald’s is one of those corporations that has lied and made false promises. We must hold each and every one these corporations, including McDonald’s CEO Chris Kempczinski, who was caught sending racist text messages, and its Board of Directors, fully accountable. The greatest trade deficit in America is the trade deficit between White corporate America and Black America, and we must close this trade deficit immediately,” Allen continued.
In a statement, McDonald’s said, “We are prepared to show that this case is utterly baseless. McDonald’s invested in media properties that aligned with the company’s business strategy and, like any other rational business, declined to invest in those that had low ratings or failed to reach the company’s target audiences.”
Per THR, in a statement, McDonald’s said, “We are prepared to show that this case is utterly baseless,” it added. “McDonald’s invested in media properties that aligned with the company’s business strategy and, like any other rational business, declined to invest in those that had low ratings or failed to reach the company’s target audiences.”
Allen said, “It is time for the McDonald’s Board of Directors, stockholders, and civil rights organizations nationwide to call for the resignation of CEO Chris Kempczinski, who was caught sending racist text messages about Black and Hispanic people.”
READ MORE FROM EURWEB.COM: Greenlight! Judge Says Byron Allen Can Proceed with 10 Billion Lawsuit Against McDonald’s | VIDEO
