Byron Allen‘s Entertainment Studios and The Weather Group have reached a settlement with McDonald’s in a lawsuit over the fast food giant’s alleged lack of support for Black-owned media companies.
McDonald’s defeated the complaint in 2024 in the U.S. District Court for the Central District of California, but Allen appealed. The parties announced the settlement Friday, though no financial details were disclosed.
Under the settlement, McDonald’s will still buy ads from ESN, which controls a range of broadcast and streaming properties, “in a manner that aligns with its advertising strategy and commercial objectives,” a press release said. and ESN will dismiss its lawsuit against McDonald’s
The fast food company is not admitting any wrongdoing and the press release affirmed that the ads sold will be priced at market value.
“We are pleased that Mr. Allen has come to appreciate McDonald’s unwavering commitment to inclusion, and has agreed to refocus his energies on a mutually beneficial commercial arrangement that is consistent with other McDonald’s supplier relationships,” McDonald’s said in a statement. “Our company’s unique three-legged stool model relies on mutual respect, and we look forward to ESN’s contributions to the betterment of our system.”
The presumed injection of capital into Allen’s companies comes as they face the same pressures hitting all media companies due to cord-cutting and declines in advertising. He recently enlisted Moelis & Co. to explore a sale of his local TV stations.
“We are pleased to find a resolution that maintains our business relationship,” ESN and The Weather Co. said. “During the course of this litigation, many of our preconceptions have been clarified, and we acknowledge McDonald’s commitment to investing in Black-owned media properties and increasing access to opportunity. Our differences are behind us, and we look forward to working together.”
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