Beautiful Virgin Islands

Wednesday, May 13, 2026

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."
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
The Great Western Exit: Why Best Citizens Are Fleeing the Rich World [PODCAST]
The New Robber Barons of Intelligence: Are AI Bosses More Powerful Than Rockefeller?
The End of the Old Order [Podcast]
Britain’s Democracy Is Now a Costume
The AI Gold Rush Is Coming for America’s Last Open Spaces [Podcast]
The Pentagon’s AI Squeeze: Eight Tech Giants Get In, Anthropic Gets Shut Out [Podcast]
The War Map: Professor Jiang’s Dark Theory of Iran, Trump, China, Russia, Israel, and the Coming Global Shock [Podcast]
Labour Is No Longer a National Party [Podcast]
AI Isn’t Stealing Your Job. It’s Dismantling It Piece by Piece.
Lawyers vs Engineers: Why China Builds While America Litigates [Podcast]
Churchill’s Glass: The Drunk, the Doctor, and the Myth Britain Refuses to Sober Up From
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
The Met Gala Meets the Age of Billionaire Backlash
Russian Oligarch’s Superyacht Crosses Hormuz via Iran-Controlled Route
Gunfire Disrupts White House Correspondents’ Dinner as Trump Is Evacuated
A Leak, a King, and a Fracturing Alliance
Inside the Gates Foundation Turmoil: Layoffs, Scrutiny, and the Cost of Reputational Risk
UK Biobank Breach Exposes Health Data of 500,000, Listed for Sale on Chinese Platform
KPMG Cuts Around 10% of US Audit Partners After Failed Exit Push
French Police Probe Suspected Weather-Data Tampering After Unusual Polymarket Bets on Paris Temperatures
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
×