McDonald’s has lost a $100 million lawsuit by Byron Allen, who accused the fast-food giant of lying when it promised to increase national advertising spending on Black-owned restaurants.
A Los Angeles Superior Court judge on Sunday dismissed a lawsuit brought by media executive Allen Media.
Allen’s case hinged on the specific interpretation of claims McDonald’s made in a 2021 press release outlining a commitment to increase spending across Black-owned businesses.
But the judge ruled that Mr Allen’s legal documents did not show a likelihood of proving the allegations in court.
McDonald’s said in a statement that the court’s dismissal of the lawsuit proves that “this is just another frivolous lawsuit brought by Byron Allen as part of a smear campaign against the company.”
Allen Media Group plans to appeal this decision.
The comedian-turned-media mogul has been in the news in recent months for his bid to buy Shari Redstone’s Paramount Global and BET Media Group, which is also owned by the media giant.
Allen ran on BET but hasn’t sold yet.
A group of investors was in talks to acquire the property in December, but a sale has yet to materialize. Mr. Allen recently submitted a $14 billion takeover offer to Redstone’s Paramount, but questions have been raised about the executive’s ability to raise money.
An independent group including Paramount Pictures, MTV and CBS is currently evaluating offers and strategic alternatives for the property.
Allen Media, which owns the Weather Channel, has another $10 billion lawsuit pending in federal court against McDonald’s. The lawsuit alleges that the chain discriminates through racial stereotypes in its advertising, violating civil rights laws.
