By Terri Dillard
Byron Allen and McDonald’s Settle Lawsuit Over Advertising Discrimination Allegations
In a significant victory for the Black Press of America this week. Media entrepreneur Byron Allen and fast-food giant McDonald’s have reached a settlement in a closely watched lawsuit that accused the company of discriminatory advertising practices against Black-owned media outlets.
The legal dispute, initiated by Allen’s companies—Entertainment Studios Networks (ESN) and The Weather Group—centered on allegations that McDonald’s systematically excluded Black-owned media from a substantial share of its advertising budget. The suit, which sparked national debate on racial equity in corporate ad spending, has now been formally dismissed following a confidential agreement between the parties.
Settlement Terms and Future Commitments
While financial details of the settlement remain undisclosed, both sides have publicly affirmed a renewed commitment to cooperation. According to a joint statement, McDonald’s has agreed to continue purchasing advertising from Allen’s broad portfolio of media properties. These future advertising transactions, the statement notes, will align with McDonald’s “advertising strategy and commercial objectives,” and will be conducted at fair market value.
McDonald’s emphasized that the agreement does not constitute an admission of wrongdoing. The company had previously prevailed in the U.S. District Court for the Central District of California in 2024 before Allen filed an appeal.
A Shift Toward Collaboration
Statements from both sides suggest a thawing of what had been a tense and adversarial relationship.
“We are pleased that Mr. Allen has come to appreciate McDonald’s unwavering commitment to inclusion,” the company said, referencing its long-standing three-legged stool business model that relies on franchisees, suppliers, and employees working in harmony.
In response, ESN and The Weather Group acknowledged a transformation in dialogue: “During the course of this litigation, many of our preconceptions have been clarified… Our differences are behind us, and we look forward to working together.”
The settlement comes at a pivotal time for Allen’s media holdings, which—like many in the industry—are grappling with the impacts of cord-cutting and declining traditional ad revenue.
Broader Implications
Beyond the legal resolution, the case amplified broader conversations around diversity in corporate advertising. It highlighted the longstanding concerns of many Black-owned media organizations of cosigning them to minor ad budgets for their consumers instead of the its general ad budget. To include publications like The Westside Gazette Newspaper—the oldest Black own newspaper in Broward County. ”This settlement is more than a legal resolution-it’s a milestone for justice in media. Byron Allen stood up not just for his companies, but for every Black-owned outlet that has been overlooked, undervalued, or outright excluded from fair access to advertising dollars. It sends a clear message: the Black Press will no longer be treated as an after though. We are essential, and we demand equity.” Bobby R. Henry, Sr. Publisher of the Westside Gazette News Paper.
Despite these contributions, Black-owned outlets have often reported being overlooked in national advertising campaigns—an issue that Allen’s lawsuit brought into sharper focus.
Upcoming Boycott Over DEI Rollbacks
The settlement arrives just as McDonald’s faces new scrutiny over its recent rollback of certain diversity, equity, and inclusion (DEI) initiatives. Civil rights and consumer advocacy groups have announced a planned boycott of McDonald’s from June 24–30, 2025, accusing the company of profiting heavily from Black consumers while providing limited support for Black-owned businesses and media.
The boycott is part of a broader national movement targeting corporations perceived as stepping back from DEI commitments. Previous targets have included Target, Amazon, Walmart, and General Mills. Organizers say the movement is gaining traction, and its allies continue to push for tangible action, with consumers increasingly shifting their dollars toward businesses that visibly prioritize equity and inclusion.
One of the movement’s mantras—“We’re peacin’ out and takin’ our wallets elsewhere”—underscores a growing sense of consumer empowerment and awareness.
Conclusion
While the legal battle between Byron Allen and McDonald’s has reached its conclusion, the broader issues it raised—economic inclusion, racial equity in media, advertising, and corporate accountability—remain in the public spotlight. Whether McDonald’s will follow through on its stated commitments may depend, in part, on continued public scrutiny and the spending choices of conscious consumers.
