McDonald's will face a $10 billion suit arguing it does not advertise enough on black-owned media
Plaintiff will be allowed to try and prove case in court, judge rules.
A federal court this week ruled that McDonald's will have to face a $10 billion lawsuit alleging that it discriminates against black-owned media channels by refusing to advertise on them.
Media tycoon Byron Allen's company Allen Media Group will bring the suit against the fast-food retailer, with U.S. District Judge Fernando Olguin clearing the way for Allen to attempt to prove his claims in court.
The company "takes billions from African American consumers and gives almost nothing back," Allen said in a press release following Olguin's decision.
"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," he argued.
McDonald's lawyer Loretta Lynch said in response to the ruling that Allen's filing "is about revenue, not race."
"[P]laintiffs’ groundless allegations ignore both McDonald’s legitimate business reasons for not investing more on their channels and the company’s long-standing business relationships with many other diverse-owned partners,” she said.
Among Allen's holdings include the Weather Channel and Comedy.tv.
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