Saudi Press

Saudi Arabia and the world
Wednesday, Feb 18, 2026

Byron Allen's Media Group Files $10 Billion Lawsuit Against McDonald's For Racial Discrimination

Byron Allen's Media Group Files $10 Billion Lawsuit Against McDonald's For Racial Discrimination

Byron Allen's Allen Media Group divisions Entertainment Studios and Weather Group, filed a lawsuit against McDonald's seeking $10 billion in damages for racial discrimination in contracting in violation of federal and state law. According to the lawsuit, McDonald's intentionally discriminated against Entertainment Studios and Weather Group through a pattern of racial stereotyping and refusals to contract.
Entertainment Studios, a media company owned by African American entrepreneur Byron Allen, owns and operates 12 high-definition television networks that are carried by over 60 multi-channel video programming distributors, including Comcast, AT&T U-Verse, Charter/Spectrum, DISH Network, DirecTV, AT&T Now, and Verizon FIOS. These networks feature lifestyle content with general audience appeal and are widely distributed to over 180 million cumulative subscribers in all 50 states. In 2018, Allen acquired Weather Group, which owns and operates the award-winning cable news network The Weather Channel and the streaming service Local Now.

McDonald's is the world's leading global food service retailer with over 39,000 locations that generate over $100 billion in annual revenue. African Americans represent approximately 40% of McDonald's U.S. sales, with McDonald's taking billions of dollars each year from African American consumers. But of its approximately $1.6 billion annual television advertising budget, McDonald's spends less than approximately $5 million each year on African American-owned media, and it has refused to advertise on Entertainment Studios networks or The Weather Channel since Allen acquired the network in 2018. Per the lawsuit, the McDonald's President and CEO Chris Kempczinski makes approximately $11 million per year, which is more than double what McDonald's spends per year on ALL of Black-owned media combined.

The lawsuit alleges that McDonald's refusal to contract is the result of racial stereotyping through McDonald's tiered advertising structure that differentiates on the basis of race. The primary advertising tier for McDonald's is referred to as "general market" and it constitutes the vast majority of McDonald's advertising budget. McDonald's, however, created a separate "African American" tier with a much smaller budget and less-favorable pricing and other terms. McDonald's contracts with a separate ad agency (Burrell Communications) for this African American tier, thereby creating separate and unequal tracks for Black-owned media companies to earn advertising revenue. McDonald's has created a discriminatory environment that is separate but not equal.

According to the lawsuit, McDonald's relegated Entertainment Studios to the less-favorable African American tier even though the companies own and operate television networks that have general market appeal and do not specifically target African American audiences. McDonald's does so because the companies are owned by Allen, an African American. Through this stereotyping, McDonald's prevented Entertainment Studios and Weather Group from accessing McDonald's general market advertising budget and deprived the companies of advertising revenue that otherwise would have been paid if McDonald's treated the companies the same as similarly situated, white-owned companies.

"This is about economic inclusion of African American-owned businesses in the U.S. economy," said Byron Allen, Founder/Chairman/CEO of Allen Media Group. "McDonald's takes billions from African American consumers and gives almost nothing back. The biggest trade deficit in America is the trade deficit between White corporate America and Black America, and McDonald's is guilty of perpetuating this disparity. The economic exclusion must stop immediately."

"As alleged in the complaint, McDonald's has engaged in pernicious racial discrimination in violation of federal and state law," said counsel for Mr. Allen and his companies, Skip Miller, partner in Miller Barondess, LLP. "I am confident the jury will recognize the injustice that has occurred here and award significant damages. We are looking forward to our day in court."
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Kazakhstan and Saudi Arabia Deepen Strategic Partnership with New Investment and Energy Agreements
Saudi Crown Prince Receives Written Message from Kazakhstan’s President Amid Expanding Strategic Ties
ImmunityBio Shares Rise After Saudi Arabia BCG Manufacturing Update Spurs Investor Optimism
Global Music Star Tyla Confirmed as Headliner at 2026 Saudi Arabian Grand Prix Entertainment Lineup
Somalia and Saudi Arabia Forge New Military Partnership Amid Regional Power Shifts
Saudi Arabia and Several Nations Criticize Israeli West Bank Land Measures as Diplomatic Tensions Rise
Saudi Public Investment Fund Transfers Stake in Take-Two Interactive as Portfolio Strategy Evolves
Saudi Arabia’s Flagship Defense Expo Highlights Industrial Ambitions and Expanding Arms Portfolio
Strategic Divergence Deepens as Saudi Arabia and UAE Recalibrate Gulf Partnership
Saudi Arabia Confirms Start of Ramadan as Crescent Moon Sighted, While Other Nations Begin a Day Later
Rubio Calls for Sweeping U.N. Reform, Saying It Has Failed to End Wars in Gaza and Ukraine
10,000 Condoms Distributed at Winter Olympics 2026 Athlete Village Depleted Within 72 Hours
Prince William Meets Saudi Crown Prince as Epstein-Andrew Fallout Casts Shadow
Goldman Sachs and DP World Executive Resignations: Elite-Reputation Risk and Corporate Governance Fallout From the Epstein Disclosures
OpenAI and DeepCent Superintelligence Race: Artificial General Intelligence and AI Agents as a National Security Arms Race
Prince William in Saudi Arabia on Official Three-Day Visit to Strengthen UK-Saudi Relations
Prince William Highlights Women’s Sport During High-Profile Visit to Saudi Arabia
Prince William Begins High-Profile Diplomatic Mission to Saudi Arabia
Syria and Saudi Arabia Seal Multibillion-Dollar Investment Agreements to Drive Post-War Economic Reconstruction
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Foreign Governments and Corporations Spend Millions with Trump-Linked Lobbying Firm in Washington
KPMG Urges Auditor to Relay AI Cost Savings
Saudi Arabia Quietly Allows Wealthy Foreign Residents to Buy Alcohol, Signalling Policy Shift
US and Iran to Begin Nuclear Talks in Oman
China unveils plans for a 'Death Star' capable of launching missile strikes from space
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
German Chancellor Friedrich Merz Begins Strategic Gulf Tour with Saudi Arabia Visit
Dubai Awards Tunnel Contract for Dubai Loop as Boring Company Plans Pilot Network
Five Key Takeaways From President Erdoğan’s Strategic Visit to Saudi Arabia
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
Erdoğan’s Saudi Arabia Visit Focuses on Trade, Investment and Strategic Cooperation
Germany and Saudi Arabia Move to Deepen Energy Cooperation Amid Global Transition
Saudi Aviation Records Historic Passenger Traffic in 2025 and Sets Sights on Further Growth in 2026
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Global Shifts in War, Trade, Energy and Security Mark Major International Developments
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Saudi Crown Prince Tells Iranian President: Kingdom Will Not Host Attacks Against Iran
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Trump Defends Saudi Crown Prince in Heated Exchange After Reporter Questions Khashoggi Murder and 9/11 Links
Saudi Stocks Rally as Kingdom Prepares to Fully Open Capital Market to Global Investors
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
Saudi Arabia scales back Neom as The Line is redesigned and Trojena downsized
Saudi Industrial Group Completes One Point Three Billion Dollar Acquisition of South Africa’s Barloworld
Saudi-Backed LIV Golf Confirms Return to Trump National Bedminster for 2026 Season
×