A federal judger has ruled that a lawsuit filed by media entrepreneur Byron Allen seeking $10 billion alleging racial discrimination by fast food giant McDonald’s can proceed to trial.
United States District Judge Fernando M. Olguin found in what he termed a “close call” that Allen’s claims that the fast-food chain promoted “racial stereotyping” by not advertising with Black-owned media ought to be addressed by a jury.
“At a minimum, this is the type of case where the ‘trial court is permitted, in its discretion, to deny even a well-supported motion for summary judgment, if it believes the case will benefit from a full hearing,’” Olguin said in a 25-page order.
Allen had alleged that his Entertainment Studios and Weather Channel were denied ad dollars spent by McDonald’s as part of its large budget for general-market advertising and instead relegated to an “African American tier” that vies for consideration with a significantly smaller much smaller ad budget, denying the media outlets millions of dollars in potential annual revenue.
“We have overwhelming evidence against McDonald’s — who has been sued by its Black executives, Black franchisees, and their global head of security — for racial discrimination,” Allen said in a statement. “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.”
McDonald’s said in a statement that In a statement that the decision reflected the fact that neither side met the high standard for dismissal at this stage of the proceedings.
“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,” McDonald’s said.
The lawsuit was initially filed in 2021.