The country’s largest Black-owned media company seeks more than $100 million in damages.
Allen Media Group has filed a lawsuit against McDonald’s Corp., alleging the hamburger giant reneged on its promise to spend 2% of its advertising budget with Black-owned media in 2021.
The lawsuit, filed in the Superior Court of the State of California, County of Los Angeles Central District, alleges fraud and false promises and seeks more than $100 million in damages.
“During the Black Lives Matter movement, hundreds of corporations made pledges to Black America, and unfortunately, they have not lived up to them,” said Byron Allen, Founder/Chairman/CEO of Allen Media Group. “McDonald’s is one of those corporations that has lied and made false promises. We must hold each and every one of these corporations, including McDonald’s CEO Chris Kempczinski, who was caught sending racist text messages, and its Board of Directors, fully accountable. The greatest trade deficit in America is the trade deficit between White corporate America and Black America, and we must close this trade deficit immediately.”
Allen Media Group owns several media brands, including theGrio.
McDonald’s said in a statement reported Monday that it was proud of its record of investing in diverse communities and partners.
“Byron Allen files baseless lawsuits as part of a public smear campaign against our company to try to line his pockets,” McDonald’s said. “We will not be coerced by these ‘in terrorem’ tactics and will defend ourselves vigorously.”
According to the lawsuit, McDonald’s didn’t spend “anywhere close to” 2% of its ad budget with Black-owned media in 2021, a number that was supposed to increase to 5% in 2024.
The lawsuit called McDonald’s plans to increase its ad spending with Black-owned media “a lie.” Allen Media Group, with 90% of the Black-owned media market, is the country’s largest African-American-owned media company.
“Given the paltry amounts McDonald’s was spending with AMG in 2021 when it made its pledge, there is no way McDonald’s was spending 2% of its advertising budget,” the company said in a press release.
Skip Miller, a partner in Miller Barondess, LLP and counsel for Allen Media Group, said, “This is a groundbreaking lawsuit based on a California law — Civil Code 1711— that holds corporations to their public promises and thereby redresses corporate fraud. That’s exactly this case.”
He added, “Per the lawsuit, McDonald’s said one thing and did another. It promised to spend 5% of its billion-dollar-a-year ad budget on African American-owned media — of which Allen Media is over 90% — and has not come close. Per our lawsuit, this is a fraud on our client and on the public. The lawsuit seeks to hold one of the largest corporations in the world responsible for its lies.”
Allen Media Group has another lawsuit pending against McDonald’s alleging discrimination and seeking more than $10 billion in damages.
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