The Fight for True Representation in Corporate America
In a bold move to challenge corporate promises and demand accountability, Byron Allen’s Allen Media Group (AMG) has taken legal action against McDonald’s. With allegations of fraud and false promises, AMG’s Entertainment Studios Networks, Inc. and Weather Group, LLC have filed a lawsuit seeking damages in excess of $100 million. The case centers around McDonald’s failure to honor its commitment to allocate 5 percent of its advertising budget to Black-Owned Media, as promised.
According to the lawsuit, McDonald’s pledged in 2021 to allocate 2 percent of its billion-dollar advertising budget to Black-Owned Media, with the intention of escalating that figure to 5 percent by 2024. However, AMG asserts that McDonald’s fell significantly short of the promised 2 percent in 2021 and has made little progress since then. The lawsuit contends that McDonald’s intentionally misled the public, using the commitment as a facade to portray itself as a champion of racial and social justice issues.
The lawsuit highlights the stark contrast between McDonald’s actions and those of its peer corporations in response to the George Floyd murder and the Black Lives Matter movement. While many corporations made substantial pledges to address racial inequality, McDonald’s allegedly failed to make a significant commitment. It was only after AMG raised concerns about racial discrimination that McDonald’s hastily released a “plan” to double its advertising spend with Black-Owned Media.
AMG challenges the authenticity of McDonald’s proclaimed “plan,” alleging that it is nothing more than a lie. As the largest African American-owned media company in the country, AMG claims to represent over 90 percent of the Black-Owned Media market. Given the minimal amounts McDonald’s allocated to AMG in 2021, it is implausible that the company came anywhere close to spending 2 percent of its advertising budget on Black-Owned Media. Even today, McDonald’s continues to allocate de minimis amounts to AMG. Consequently, McDonald’s has failed to fulfill its commitment to the public and its shareholders.
AMG seeks damages exceeding $100 million, in addition to punitive damages and a permanent injunction compelling McDonald’s to honor its promise of allocating at least 5 percent of its advertising budget to Black-Owned Media. Full transparency is also demanded, ensuring that McDonald’s is held accountable for its actions moving forward.
Byron Allen’s Message Byron Allen, the Founder/Chairman/CEO of Allen Media Group, passionately emphasizes the importance of upholding corporate pledges made during the Black Lives Matter movement. He criticizes McDonald’s, including its CEO Chris Kempczinski, who was allegedly involved in racist text messages, along with its Board of Directors, for their lack of integrity. Allen asserts that closing the trade deficit between White corporate America and Black America is crucial, and companies like McDonald’s must be held accountable to rectify this disparity.
Skip Miller, partner at Miller Barondess, LLP and counsel for Allen Media Group, highlights the significance of this lawsuit. Drawing upon California law—Civil Code 1711—the case aims to hold corporations accountable for their public promises and address corporate fraud. By alleging that McDonald’s said one thing and did another, the lawsuit seeks to expose the company’s false representation and ensure that one of the world’s largest corporations is held responsible for its deceit.
As the legal battle unfolds between Byron Allen’s Allen Media Group and McDonald’s, the importance of transparency, integrity, and equality in corporate America takes center stage. AMG’s lawsuit sends a powerful message to corporations: promises made must be promises kept. The fight for true representation and accountability continues, reminding us all of the urgent need to close the trade deficit between White corporate America and Black America. Only by demanding justice can we pave the way for a more equitable future.
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