Byron Allen, the owner of The Weather Channel and several other networks, has agreed to dismiss his federal discrimination lawsuit against McDonald’s as part of a settlement agreement announced on Friday.
Terms of the deal were confidential. But McDonald’s will continue to buy advertising from Allen’s Entertainment Studios Network at “market value” prices and the company is not admitting any wrongdoing.
In the process, the settlement will end a four-year legal battle between McDonald’s and Allen over the fast-food giant’s ad purchasing decisions.
Allen, who rose from a comedian to become the founder of a global media operation, first sued McDonald’s in 2021, alleging that the chain discriminated against his company—pigeonholding it as Black-owned media that deserved less spending.
That action would survive multiple dismissal efforts and the action was recently allowed to proceed to trial. Allen also sued McDonald’s in state court and publicly criticized company management, at one point issuing an open letter calling for CEO Chris Kempczinski’s resignation.
Allen’s companies now say, however, that the differences have been resolved.
“We are pleased to find a resolution that maintains our business relationship,” Entertainment Studios Network and The Weather Group said in a statement. “During the court 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.”
McDonald’s in a statement said it has a “commitment to inclusion” and that the company and Allen’s media properties will have a “mutually beneficial arrangement that is consistent with other McDonald’s supplier arrangements.”
“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 arrangements,” the company said.
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