In 2023, Allen hit McDonald’s with a second lawsuit for $100 million and punitive damages, as previously reported by AFROTECH.
The media mogul claimed that McDonald’s violated a California anti-fraud law “against making false promises.” In addition, he alleged that the fast-food restaurant chain failed to advertise with Black-owned media. Allen’s allegations came after McDonald’s announced it would increase its ad revenue from 2% to 5% by 2024.
“During the Black Lives Matter movement, hundreds of corporations made pledges to Black America…McDonald’s is one of those corporations that has lied and made false promises,” Allen shared in a statement, per Reuters.
In response to Allen, McDonald’s claimed that his lawsuits were “baseless” and an attempt to “line his pockets.”
On Feb. 4, 2024, Los Angeles Superior Court Judge Mel Recana dismissed Allen’s $100 million fraud lawsuit based on her finding that McDonald’s was set to likely win if it were to carry on, according to The Hollywood Reporter.
The outlet also shared, “In a declaration to the court, AMG chief revenue officer Darren Galatt said that the company submitted a proposal for $30 million in ad spend to McDonald’s, which rejected the offer and agreed to spend only a fraction of that amount. He attested that McDonald’s needs to spend roughly $25 million with Black-owned media by this year to reach its goal.”
The judge went on to conclude that there was 11 months remaining for McDonald’s to follow through with its commitment and Allen’s lawsuit was “filed before 2024 and this year just begun and has not passed.”
“It is purely speculative to conclude Defendant will not perform on its promise even if Defendant has not yet committed the amount needed in spending,” the order stated.
According to the outlet, a McDonald’s executive claimed in the court that McDonald’s would split its national ad budget with Black-owned media companies, production houses, and content creators.
Despite the judge’s ruling, Allen Media Group’s lawyer, Louis Miller, said that it will be appealed. Additionally, he declared that Allen Media Group is still moving forward with a separate lawsuit against McDonald’s, which claims the company has racial stereotyping through a tiered advertising structure including an “African American tier” that has a smaller advertising budget.
