McDonald’s Loses Bid to Get Byron Allen Suit Tossed; Will Refile

McDonald’s stated the ruling was procedural.

“McDonald’s will refile its movement to dismiss by January 27 and continues to consider plaintiffs’ claims are meritless,” the corporate stated in a press release. “This case is about income not race, and plaintiffs’ groundless allegations ignore McDonald’s legit enterprise causes for not investing extra on their channels and the corporate’s collaboration with diverse-owned companions.”

Get 4 weeks of Crain’s for $1

In Might, Allen’s Leisure Studios Networks Inc. sued McDonald’s, claiming the quick meals chain discriminates in opposition to Black-owned tv networks like his Climate Channel by virtually solely spending its promoting {dollars} with White-owned stations. The lawsuit, which seeks $10 billion in damages, is a part of a motion by Allen to right what he deems is a long-running bias in opposition to Black-owned companies.

Allen’s lawsuit was initially dismissed, and he’s now in search of to maneuver forward with a 3rd amended grievance.

“We sit up for presenting our monumental proof in court docket, which is able to show the systemic racism at McDonald’s,” Allen stated in a press release. “And I firmly consider the board at McDonald’s ought to hearth the CEO Chris Kempczinski instantly.”

McDonald’s spends lower than $5 million, or 0.3% of its annual $1.6 billion promoting price range, with Black-owned media firms, in response to the unique grievance. The TV producer and entrepreneur, who’s African-American, has stated advertisers ought to spend at the very least 5% of their budgets with firms reminiscent of his.

The case is Leisure Studios Networks Inc. v. McDonald’s USA, 2:21-cv-04972, U.S. District Courtroom, Central District of California.

Excessive-quality journalism is not free. Please consider subscribing to Crain’s.