McDonald’s settles $10 billion lawsuit with Byron Allen over ad spending

Published 13/06/2025, 19:50
© Reuters.

Investing.com -- McDonald’s (NYSE:MCD) has reached a settlement in a $10 billion lawsuit filed by media entrepreneur Byron Allen that claimed the fast-food chain refused to advertise with Black-owned media companies.

The settlement, reached Friday, resolves the legal dispute between McDonald’s and two of Allen’s businesses, Entertainment Studios Networks and the Weather Group. The agreement comes before the scheduled July 15 trial in Los Angeles federal court.

As part of the settlement, the Chicago-based restaurant chain will purchase advertisements "at market value" from Allen’s companies "in a manner that aligns with its advertising strategy and commercial objectives."

The agreement also resolves a related $100 million lawsuit Allen had filed against McDonald’s in Los Angeles Superior Court.

While the specific terms of the settlement remain confidential, McDonald’s denied any wrongdoing in agreeing to settle the case.

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