Mcdonald's is facing a massive lawsuit after media mogul Byron Allen claimed that Mcdonald's deliberately excludes black-owned media in their advertising campaigns.
Allen, owner of Allen Media Group, is suing the fast-food chain for $10 billion, and has said they have refused to advertise on his networks Entertainment Studios Networks and Weather Group.
Allen claimed that McDonald's only spends $5 million of its total budget on African American media. He said that McDonald's had created an African-American tier with a smaller budget, and that he believed his TV networks had been categorized.
Allen said in a press release last week that this is about economic inclusion of African American-owned businesses.
McDonald's takes billions of dollars from African American consumers and doesn't give anything back. The biggest trade deficit in America is the trade deficit between White corporate America and Black America, and Mcdonald's is guilty of causing this disparity.
Allen will argue that Mcdonald's is violating civil rights laws. The case could go forward after the judge ruled last week.
There are enough facts to support an inference of intentional discrimination according to Olguin.
McDonald's legal counsel said Allen's claims aremeritless.
McDonald's legitimate business reasons for not investing more on their channels and the company's long-standing business relationships with many other diverse owned partners are ignored by the lawsuit.
McDonald's will increase advertising with Black-owned companies from 2% to 5% of its total budget in the next five years.
McDonald's did not reply immediately.
The case is expected to be heard in May.
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