Byron Allen Accuses McDonald’s of Breaking Pledge to Advertise With Black-Owned Media in $100 Million Lawsuit
thewrap.comByron Allen’s media company has sued McDonald’s for $100 million, accusing the fast-food Goliath of not living up to its pledge to spend a set percentage of its billion-dollar annual advertising budget with Black-owned outlets.Allen Media Group divisions Entertainment Studios and Weather Group filed the action late last week in Superior Court of California.
The lawsuit alleges fraud and “false promise” in violation of state civil code, and seeks in excess of $100 million. McDonald’s did not immediately respond to a comment request Monday.The lawsuit says McDonald’s committed in 2021 to spending two percent of its ad budget with Black-owned media companies, jumping to five percent by 2024, but has failed to meet those commitments, then “rushed out a ‘plan'” when AMG called them out.“This ‘plan’ was a lie,” the plaintiff’s state.
According to the lawsuit: “AMG is by far the largest African American-owned media company in the country, and Plaintiffs represent over 90% of that category.
As such, to fulfill its commitment, any allocation would require McDonald’s to spend in excess of $50 million annually to advertise on Plaintiffs’ properties.”The suit does not suggest that McDonald’s made any legally binding commitments directly to Allen Media Group.
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