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Byron Allen’s $10 billion lawsuit against McDonald’s for racial discrimination will go to trial

The latest ruling in a lawsuit filed by Allen’s media companies is hailed as “historic” as Allen uses a post-Civil War statute in his bid against the fast food chain.

A judge has ruled in favor of media mogul and owner of theGrio, Byron Allen, allowing his $10 billion racial discrimination lawsuit against McDonald’s to proceed in California federal court, theGrio reports.

United States District Judge Fernando M. Olguin ruled that there was sufficient evidence for the suit filed against McDonald’s by Allen’s media companies under Section 1981 of the Civil Rights Act of 1866 to go to trial court. The lawsuit alleges that the fast food chain blocked Allen and his media properties, including his TV networks and streaming assets, from McDonald’s general market ad agency responsible for dispersing the vast majority of McDonald’s massive ad budget.

According to court filings, McDonald’s spends hundreds of millions of dollars each year to advertise its products in national media.

Instead, the lawsuit claims Allen and his companies were relegated to McDonald’s Black-only ad agency, which has a significantly smaller budget. The racial discrimination suit argues that despite annual pleas for the Allen Media companies to be included in McDonald’s general ad market, they remained in its Black-only market because Allen is Black, which Allen’s parent company Entertainment Studios described as “blatant and pernicious discrimination.”

In his 25-page ruling, Judge Olguin denied McDonald’s motion for a summary judgment in its favor. Instead, the case will proceed in a court trial that could see Allen succeed in a groundbreaking racial discrimination suit.

“We have overwhelming evidence against McDonald’s — who has been sued by its Black executives, Black franchisees, and their global head of security — for racial discrimination,” Byron Allen, founder, chairman and CEO of Allen Media Group, said in a statement to theGrio. “It is time for the McDonald’s Board of Directors, stockholders, and civil rights organizations nationwide to call for the resignation of CEO Chris Kempczinski, who was caught sending racist text messages about Black and Hispanic people.”

Allen’s attorney in the case, Louis R. “Skip” Miller of Miller Barondess, called Judge Olguin’s order a “historic ruling,” adding, “We look forward to presenting the evidence of racial discrimination by McDonald’s against our client to a Los Angeles jury in federal court.”

The law used in Allen’s suit against McDonald’s is a post a post-Civil War statute that allowed “all persons within the jurisdiction of the United States” to have the same right to uphold contracts “as is enjoyed by white citizens.” The law’s objective was to safeguard Black enterprises from racial discrimination during America’s Reconstruction era, just one year after the Civil War ended, freeing enslaved African Americans from centuries of bondage.

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by Anonymousreply 24December 6, 2024 12:19 AM

Has Sarah Purcell commented?

by Anonymousreply 1December 5, 2024 4:44 AM

[quote] According to court filings, McDonald’s spends hundreds of millions of dollars each year to advertise its products in national media.

[quote] Instead, the lawsuit claims Allen and his companies were relegated to McDonald’s Black-only ad agency, which has a significantly smaller budget. The racial discrimination suit argues that despite annual pleas for the Allen Media companies to be included in McDonald’s general ad market, they remained in its Black-only market because

[quote] Allen is Black, which Allen’s parent company Entertainment Studios described as “blatant and pernicious discrimination.”

That's definitely discrimination.

I hope he wins all $10 billion or even more.

by Anonymousreply 2December 5, 2024 4:50 AM

I will watch this trial . Hideous discrimination .

by Anonymousreply 3December 5, 2024 5:08 AM

[quote]That's definitely discrimination.

Perhaps. It's a lot more complicated.

Market segmentation is a real thing. Targeting marketing is critical for success. Who do you believe is the primary audience of BET or Telemundo?

It also goes to the question of whether you believe that a black-only agency would do a better job placing ads targeting that segment of the market.

Or should the company simply ignore that segment entirely and focus on the mass market, potentially not placing any ads or worse, ineffective ads, by using a more generalist agency.

It also goes to whether Allen's properties would have gotten as much if they had been included in the wider ad buys. If McDonald's eliminated the black agency and put all the money into the primary agency, would they have received as much in ad sales or would they have lost out on ads.

Sure, the pool of money was larger at the other agency, but would they have actually received a larger cut? I question that. It's also possible that Allen's media companies were a big fish in the smaller ad agency pond, so received an outsized portion of ad spends.

What Allen wanted was a share of BOTH. But realistically, he was never going to get that as companies allocate budgets based on specific segments they want to cover.

by Anonymousreply 4December 5, 2024 5:19 AM

[quote]his companies were relegated to McDonald’s Black-only ad agency

I didn't know this existed. A quick trip to YouTube shows multiple compilations of McDonald's "Black-only" ads riddled with racial stereotypes.

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by Anonymousreply 5December 5, 2024 5:35 AM

The way I see it is that Byron Allen is just a marketing company that wanted McDonald's advertising revenue to target ALL segments of the population, and not just black people.

Why not treat him like any other media company, regardless of who owns it?

He's a media mogul who just wants a piece of McDonald's advertising budget

His race/color has absolutely nothing to do with it, because his COMPANY isn't black. It's just a media company.

So why limit him to only a black market?

That's ridiculous.

If he were white, it wouldn't be an issue. Like, at all.

But because the owner is black, he can only market to black people?

That's called discrimination. Any way you look at it.

by Anonymousreply 6December 5, 2024 5:36 AM

[quote]I didn't know this existed. A quick trip to YouTube shows multiple compilations of McDonald's "Black-only" ads riddled with racial stereotypes.

Importantly, created or at least approved by a black-only agency, presumably owned and or run by black people, thus mitigating any potential backlash regardingn said racial stereotypes.

Also, is it stereotyping or is it ads that resonate with the target audience?

Would ads with hot mostly naked men be "stereotyping" gay people or effectively targeting with imagery which resonates with DLers? Or, if someone created an ad with some little queen were trying to dial a phone with a pencil to call grandma during the holidays, would that be stereotyping or would DLers think it was adorable?

by Anonymousreply 7December 5, 2024 6:06 AM

[quote]created or at least approved by a black-only agency, presumably owned and or run by black people, thus mitigating any potential backlash regardingn said racial stereotypes. thus mitigating any potential backlash regardingn said racial stereotypes.

If this were true, there wouldn't be so many YouTube videos and comments about racism, stereotyping, and pointing out white McDonald's executives are the ultimate decision-makers.

[quote]is it stereotyping or is it ads that resonate with the target audience?

The ads don't resonate and this comment implies black people are a monolith who all identify with stereotypes.

[quote]Would ads with hot mostly naked men be "stereotyping" gay people or effectively targeting with imagery which resonates with DLers?

I don't know how you would incorporate this into a McDonald's ad, but, yes, this would be stereotyping.

You want to be right, so go ahead and think you're right, I'm removing this thread from my watched list.

Since you didn't watch the video I linked, there is no point in linking another one, but I'm doing it anyway. I'm also quoting R6 in case you missed his comment:

[quote]Byron Allen is just a marketing company that wanted McDonald's advertising revenue to target ALL segments of the population, and not just black people. [...] His race/color has absolutely nothing to do with it, because his COMPANY isn't black. It's just a media company. So why limit him to only a black market? That's ridiculous. If he were white, it wouldn't be an issue. Like, at all. But because the owner is black, he can only market to black people?

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by Anonymousreply 8December 5, 2024 6:44 AM

Hope unc wins that suit. Drop a billy my way

by Anonymousreply 9December 5, 2024 7:17 AM

The general market agency is the legendary Wieden & Kennedy, of Nike fame, and staffed top to bottom with all races. Byron isn’t being discriminated against because he’s black; he’s being discriminated against because he’s mediocre.

by Anonymousreply 10December 5, 2024 7:38 AM

How is Allen mediocre?

by Anonymousreply 11December 5, 2024 8:13 AM

[quote] Byron isn’t being discriminated against because he’s black; he’s being discriminated against because he’s mediocre.

It's so interesting you wrote that.

Because your IMPLICATION is that he's mediocre BECAUSE he's black.

You also give absolutely no factual basis for calling him mediocre.

On the other hand, I can tell you that he's NOT mediocre because he is a former television funny guy and talk show host, who went from some ridiculously obscure tv shows, to building a media EMPIRE worth billions.

I would hardly call that "mediocre." I would call that EXTRAORDINARY.

I'd like to see the basis upon which Wieden & Kennedy denied his requests to do advertising for McDonald's.

Byron is no dummy. He wouldn't be bringing this suit if it was just a frivolous accusation. That would just damage his reputation.

So let them try to defend themselves. I'll just bet you they are going to lose, and they will have to pay him every single penny of the $10 billion.

Then he won't need their fucking McDonald's account.

HA!

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by Anonymousreply 12December 5, 2024 8:26 AM

McDonald's argument would make sense if all of Allen's properties were marketed to the Black audience. But in fact he owns all kinds of media. Why should marketing for The Weather Channel go through the Black department?

by Anonymousreply 13December 5, 2024 8:32 AM

Excuse me, gays here!

by Anonymousreply 14December 5, 2024 8:37 AM

Allen's rise is really remarkable, r12. I remember he was a stand up comedian in the 80s and had a movie review and interview program that came on late night after the local news on weekends in the late 80s/early 90s. I watched occasionally then forgot about him. About 10 years ago I caught an article about him and lo and behold he's a a media mogul whose companies are valued in the billions. That's the kind of mediocrity that needs to be bottled and sold.

by Anonymousreply 15December 5, 2024 8:42 AM

Is it because he is bleck?

by Anonymousreply 16December 5, 2024 10:58 AM

[quote] McDonald's argument would make sense if all of Allen's properties were marketed to the Black audience. But in fact he owns all kinds of media. Why should marketing for The Weather Channel go through the Black department?

Precisely why McDonald's is going to lose this lawsuit.

by Anonymousreply 17December 5, 2024 10:59 AM

Here's one, R5.

Not sure why it's labeled "racist," though.

It seems normal to me.

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by Anonymousreply 18December 5, 2024 4:56 PM

[quote] What Is Byron Allen's Net Worth?

[quote] Byron Allen is an American comedian, television producer, and entertainment mogul who has a net worth of $800 million. Byron Allen is one of the most under-the-radar, extremely successful people in Hollywood. He began his career as a stand-up comedian, making his debut on "The Tonight Show Starring Johnny Carson," one of the youngest comedians ever to perform on the show. This early success led to a regular role on the NBC television series "Real People."

[quote] Transitioning from comedy to business, Allen founded Entertainment Studios in 1991, a fully integrated global media production and distribution company. This company became notable for producing and distributing TV shows, selling advertising, and pioneering court show productions. In 2009, he launched six HD television networks. He also owns and operates Allen Media Group (AMG).

[quote] In 2018, Byron paid $300 million for The Weather Channel television network (not the website). Between his two companies, he owns 12 cable networks and actively produces around 70 television shows that air on affiliates across the United States.

[quote] [bold]In recent years, Byron has earned headlines for launching a series of (so far) unsuccessful high-dollar acquisitions.[/bold]

[quote] In March 2020, he made an $8.5 billion offer to buy TV station owner Tegna. In 2022, he attempted to buy the NFL's Washington Commanders. In September 2023, he made a $10 billion offer to buy ABC and various other TV stations from Disney. In November 2023, he attempted to buy TV stations owned by E.W. Scripps. In December 2023, he made a $3.5 billion offer to buy Black Entertainment Television from Paramount. In January 2024, he completed a $14 billion offer to buy out Paramount.

[quote] [bold]None of these deals have actually come to fruition.[/bold]

Now I'm starting to wonder if the media giants are actively working to keep him out of the "big leagues" on purpose?

Every offer he has made has been rejected.

I'm very curious why?

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by Anonymousreply 19December 5, 2024 5:31 PM

McDonald’s gives me nasty smelling gas. Can I sue?

by Anonymousreply 20December 5, 2024 5:50 PM

You're beyond help, R20.

by Anonymousreply 21December 5, 2024 8:03 PM

Yes, I remember watching him on TV years ago. He's done very well 👏👏👏

by Anonymousreply 22December 5, 2024 8:10 PM

But I especially love and respond to MickeyDee advertising! “I’se luv dis place!” Hee hee. Remember that one? C-razy!

by Anonymousreply 23December 5, 2024 9:44 PM

R23 makes no sense.

by Anonymousreply 24December 6, 2024 12:19 AM
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