A federal judge in Los Angeles denied a motion to dismiss the $10 billion racial discrimination suit brought against McDonald’s by Byron Allen’s companies, including Entertainment Studios.
The suit, originally filed last May, alleges McDonald’s discriminates against media companies that are owned by and serve minorities. It contends McDonald’s spends less than $5 million a year on African-American-owned media and has shown a pattern of stereotyping and refusing to do business.
Specifically, McDonald’s has refused to advertise on Entertainment Studios’s networks or The Weather Channel since they were acquired by Allen and became part of his company, Allen Media Group, the suit charges.
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“This is about economic inclusion of African-American-owned businesses in the U.S. economy. McDonald’s takes billions from African American consumers and gives almost nothing back,” said Allen, founder/chairman/CEO of Allen Media Group. “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.”
“McDonald’s CEO Chris Kempczinski got caught sending racist text messages and McDonald’s has been sued by the Black franchisees, the Black executives, the Black employees, the Black vendors, and 52% of the McDonald’s stockholders recently voted to hire a third-party firm to investigate McDonald’s for civil rights violations. This is historic!!! The overt and systemic racism at McDonald’s is undeniable and indefensible. McDonald’s CEO Chris Kempczinski, McDonald’s chief marketing officer Morgan Flatley, and the board of directors must be fired,” Allen said.
With the motion to dismiss by McDonald’s rejected, the case could reach a jury next May.
“As alleged in our complaint, McDonald’s has engaged in pernicious racial discrimination in violation of federal and state law,” said David Schecter and Skip Miller, partners in Miller Barondess, LLP, counsel for Allen and his companies. “We are confident the jury will recognize the injustice that has occurred here and will award significant damages. We are looking forward to our day in court.” ■
