McDonald’s has reached an agreement to end a $ 10 billion lawsuit filed by the media entrepreneur Byron Allen, who accused the fast food chain of “racial stereotypes” by excluding media vehicles detained by much of his advertising budget.
This Friday’s deal between McDonald’s and two of the Allen companies, Entertainment Studios Networks and Weather Group avoids the judgment that was scheduled for July 15 in a Federal Court of Los Angeles.
It also resolves accusations presented in another $ 100 million action filed by Allen in the Los Angeles Higher Court.
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McDonald’s said it will buy “market value” ads from Allen companies, “in line with their advertising strategy and their commercial goals”.
The terms of the agreement are confidential. McDonald’s, based in Chicago, denied any irregularity in accepting the agreement.
In a statement, Allen’s companies stated: “We recognize McDonald’s commitment to invest in black -owned media vehicles and expand access to opportunities. Our differences are left behind.”
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Allen accused McDonald’s to falsely label Entertainment Studios as a media company that produces content exclusively to the black public, directing it to a “minimum” advertising budget aimed at this audience, rather than including it in the general advertising budget.
