Media mogul Byron Allen has settled his year-long legal battle with McDonald’s over its alleged refusal to advertise on Black-owned television channels.
The settlement comes just a few weeks before a federal jury trial was scheduled to begin, which would have centered around Allen’s claim that McDonald’s prioritized its advertising budget in a way that disenfranchised minority-owned or controlled media platforms.
Financial terms of the settlement were not released, but McDonald’s said it was not required to admit wrongdoing in order to resolve the case. McDonald’s said it will continue to buy advertising from media channels at “market value.”
“We are pleased that Mr. Allen has come to appreciate McDonald’s unwavering commitment to inclusion, and has agreed to refocus his energies on a mutually beneficial commercial arrangement that is consistent with other McDonald’s supplier relationships,” the company said in a statement on Friday. “Our company’s unique three-legged stool model relies on mutual respect, and we look forward to ESN’s contributions to the betterment of our system.”
Entertainment Studios, the company founded by Allen, said it was “pleased to find a resolution that maintains our business relationship.”
“During the course of this litigation, many of our preconceptions have been clarified, and we acknowledge McDonald’s commitment to investing in Black-owned media properties and increasing access to opportunity,” a spokesperson for the company said. “Our differences are behind us, and we look forward to working together.”
McDonald’s is the largest fast food operation in the world.
The settlement comes at a precarious time for Allen: Faced with a significant amount of debt connected to his acquisitions of local media operations and The Weather Channel over the years, Allen recently announced plans to sell off his portfolio of local broadcast television stations.
“Six years ago, Allen Media Group began the process of investing over one billion dollars to acquire big four network-affiliated television stations,” Allen said earlier this month. “We have received numerous inquiries and written offers for most of our television stations, and now is the time to explore getting a return on this phenomenal investment.”
