Byron Allen’s legal battle against McDonald’s is facing setbacks as a judge in Los Angeles Superior Court ruled against his $100 million lawsuit. Allen accused McDonald’s of failing to uphold its pledges to significantly increase advertising with Black-owned media companies.
McDonald’s announced a “four-year plan” in May 2021 to elevate its national media spending with Black-owned companies from 2% to 5%, with Allen’s Weather Group, LLC and Plaintiff Entertainment Studios Networks, Inc intending to support this initiative. However, Allen’s team alleged that McDonald’s had only shown interest in issuing press releases, without following through with its commitments.
In response, Allen’s lawyer filed a fraud suit, leading to a series of legal filings. Judge Mel Red Recana recently sided with McDonald’s, dismissing the initial complaint under California’s anti-SLAPP statute and stating that the company did not make a “false promise,” as claimed by the plaintiffs.
The judge’s order dated February 2 highlighted that the evidence presented by the plaintiffs failed to demonstrate that McDonald’s had not fulfilled its promise at the time it was made. The court emphasized that the deadline for McDonald’s commitment had not yet passed, and there was uncertainty regarding the company’s performance as it still had 11 months remaining in the year to fulfill its promise.
The order further noted McDonald’s Vice President of U.S. Customer Engagement, Caleb Pearson, attesting to the company’s plan to allocate five percent of its national advertising budget to Black-owned media companies, production houses, and content creators in 2024.
Following the court’s decision, McDonald’s reacted assertively to the ruling. The company stated, “The court’s decision serves as confirmation of what we’ve said all along: this was just another frivolous lawsuit brought by Byron Allen as part of his smear campaign against McDonald’s.”
McDonald’s also emphasized its commitment to collaborating with diverse-owned partners and advancing inclusion and diversity efforts.
Allen’s legal team expressed disagreement with the court ruling and announced intentions to appeal. Attorney Louis “Skip” Miller remarked that the lawsuit seeks to uphold a California law prohibiting companies from making false statements to the public. He also highlighted another ongoing lawsuit against McDonald’s, a $10 billion racial discrimination case filed in federal court.
As Allen continues to pursue legal action against McDonald’s, the outcome of these legal battles remains uncertain, with potential repercussions for both parties involved.
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