Byron Allen’s $10 Billion Lawsuit Against McDonald’s Allowed To Proceed To Trial

Byron Allen filed a lawsuit against McDonald’s alleging racial discrimination, and the latest update is allowing the media entrepreneur and his team to continue fighting for their case. Allen is seeking upwards of $10 billion from the fast food giant, and on Tuesday (Dec. 3), a federal judge ruled the lawsuit can proceed to trial, per The Hollywood Reporter.

Allen’s claims accuse McD’s of discriminating against Black-owned media companies. The outlet reports that U.S. District Judge Fernando Olguin found the corporation “may have violated civil rights laws by relegating Byron Allen‘s networks to meager advertising tiers specifically reserved for companies that produce content targeted to Black audiences,” although the decision was a “close call.”

Olguin ruled there’s enough evidence to plead a case that argues Entertainment Studios and The Weather Channel were shut out of McDonald’s general market.

McDonald’s has issued a statement about the case, saying the ruling “simply means that neither party met the high standard for dismissal” and that the case must still be considered by a jury. It continues, “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.”

However, Allen remained steadfast in his stance, assuring there’s “overwhelming evidence” of discrimination by McDonald’s. “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,” he added.

The most recent motion is a follow-up to February’s status of the case, which consisted of a judge dismissing the lawsuit. The Allen Media Group founder’s attorney cited California’s Civil Code [Section] 1711 at the time, the legislation that prohibits companies from making false statements to the public, and vowed to appeal the decision.

The CEO made headlines earlier this year due to another big move of his, placing a hefty bid to purchase Paramount Global. In January 2024, he submitted a $30 billion bid to buy the company’s outstanding shares. The deal would have also seen Allen Media Group assume Paramount’s roughly $15 billion debt load.