Today, the fast-food giant McDonald’s quietly closed the chapter on a massive legal showdown with media mogul Byron Allen. In 2021, Allen sued McDonald’s for a jaw-dropping $10 billion, alleging they systematically excluded his Black-owned networks—including Entertainment Studios and The Weather Channel—from major advertising contracts.
Fast forward to June 13, 2025, and both sides quietly shook hands. The settlement, just days before the scheduled trial in L.A., requires McDonald’s to buy ads at market value from Allen’s companies and marks the end of a related $100 million lawsuit in California.
The financial details are sealed—but both McDonald’s and Allen recognized this as a fresh start, with McDonald’s affirming its commitment to support Black-owned media.
What makes this moment so impactful is how glaring the imbalance was. McDonald’s had promised in 2021 to increase ad spend with Black-owned outlets from 2% to 5%—but never hit that target. Allen argued their tiered system pigeonholed his networks into a “Black-only” bucket, sidelining them from their broader spending—despite his outlets making up over 90% of Black-owned media. (via ainvest.com).
This isn’t Allen’s first ride. He’s previously taken Comcast, DirecTV, Charter, and others to court—and his win at the Supreme Court over Comcast is still fresh. But this McDonald’s case may be the most powerful yet.
We’re talking about $10 billion, national prominence, and a challenge to corporate America’s marketing habits.
Beyond the legal win, this moment signals a shift. Brands once able to skim budgets hopefully won’t get off that easy anymore. And Black-owned media, once overlooked, will start seeing what real inclusion looks like.
Bottom line: McDonald’s may have avoided a courtroom showdown, but the impact is already echoing. For Byron Allen, it’s another step toward redefining value in advertising.
For Black business owners everywhere, it’s a victory sign that when systems are broken, standing up can make history.
