Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Byron Allen's Media Group Files $10 Billion Lawsuit Against McDonald's For Racial Discrimination

Byron Allen's Media Group Files $10 Billion Lawsuit Against McDonald's For Racial Discrimination

Byron Allen's Allen Media Group divisions Entertainment Studios and Weather Group, filed a lawsuit against McDonald's seeking $10 billion in damages for racial discrimination in contracting in violation of federal and state law. According to the lawsuit, McDonald's intentionally discriminated against Entertainment Studios and Weather Group through a pattern of racial stereotyping and refusals to contract.
Entertainment Studios, a media company owned by African American entrepreneur Byron Allen, owns and operates 12 high-definition television networks that are carried by over 60 multi-channel video programming distributors, including Comcast, AT&T U-Verse, Charter/Spectrum, DISH Network, DirecTV, AT&T Now, and Verizon FIOS. These networks feature lifestyle content with general audience appeal and are widely distributed to over 180 million cumulative subscribers in all 50 states. In 2018, Allen acquired Weather Group, which owns and operates the award-winning cable news network The Weather Channel and the streaming service Local Now.

McDonald's is the world's leading global food service retailer with over 39,000 locations that generate over $100 billion in annual revenue. African Americans represent approximately 40% of McDonald's U.S. sales, with McDonald's taking billions of dollars each year from African American consumers. But of its approximately $1.6 billion annual television advertising budget, McDonald's spends less than approximately $5 million each year on African American-owned media, and it has refused to advertise on Entertainment Studios networks or The Weather Channel since Allen acquired the network in 2018. Per the lawsuit, the McDonald's President and CEO Chris Kempczinski makes approximately $11 million per year, which is more than double what McDonald's spends per year on ALL of Black-owned media combined.

The lawsuit alleges that McDonald's refusal to contract is the result of racial stereotyping through McDonald's tiered advertising structure that differentiates on the basis of race. The primary advertising tier for McDonald's is referred to as "general market" and it constitutes the vast majority of McDonald's advertising budget. McDonald's, however, created a separate "African American" tier with a much smaller budget and less-favorable pricing and other terms. McDonald's contracts with a separate ad agency (Burrell Communications) for this African American tier, thereby creating separate and unequal tracks for Black-owned media companies to earn advertising revenue. McDonald's has created a discriminatory environment that is separate but not equal.

According to the lawsuit, McDonald's relegated Entertainment Studios to the less-favorable African American tier even though the companies own and operate television networks that have general market appeal and do not specifically target African American audiences. McDonald's does so because the companies are owned by Allen, an African American. Through this stereotyping, McDonald's prevented Entertainment Studios and Weather Group from accessing McDonald's general market advertising budget and deprived the companies of advertising revenue that otherwise would have been paid if McDonald's treated the companies the same as similarly situated, white-owned companies.

"This is about economic inclusion of African American-owned businesses in the U.S. economy," said Byron Allen, Founder/Chairman/CEO of Allen Media Group. "McDonald's takes billions from African American consumers and gives almost nothing back. 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."

"As alleged in the complaint, McDonald's has engaged in pernicious racial discrimination in violation of federal and state law," said counsel for Mr. Allen and his companies, Skip Miller, partner in Miller Barondess, LLP. "I am confident the jury will recognize the injustice that has occurred here and award significant damages. We are looking forward to our day in court."
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
A monster hit and a billion-dollar toy empire
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
Canada: Nurse Suspended and Fined 93 Thousand Dollars After Stating the World’s Most Well-Known Fact Since the Creation of Adam and Eve, That There Are Only Two Genders
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
U.S. Treasury Secretary Whitney Bessent Backs Stablecoins to Boost Treasury Demand
Spain to Declare Disaster Zones After Massive Wildfires
Three-Minute Battery Swap Touted as Future of EVs
Beijing Military Parade to Showcase Weapons Advances
U.S. Tech Stocks Slide on AI Boom Concerns
White House Confirms Talks Over Intel Stake
Trump Suggests U.S. Could Support Ukraine ‘By Air’
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
UK Government Tries to Sue 4chan for Breaching Online Safety Act
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
"Every Centimeter of Your Body Is a Masterpiece": The Shocking Meta Document Revealed
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
Beijing is moving into gold and other assets, diversifying away from the dollar
China Requires Data Centres to Source Majority of AI Chips Locally, For Technological Sovereignty
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
Jellyfish Swarm Triggers Shutdown at Gravelines Nuclear Power Station in Northern France
OpenAI’s ‘PhD-Level’ ChatGPT 5 Stumbles, Struggles to Even Label a Map
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×