McDonald's files for sanctions against Byron Allen companies as part of ad spend court battle

McDonald’s has fired back in its ongoing court battle with media entrepreneur Byron Allen, making good on a promise to fight a lawsuit he filed against the fast food chain in May. In this latest spar, McDonald’s has filed a motion for sanctions against Allen’s companies, Entertainment Studio Networks and Weather Group, which include properties such as The Weather Channel and Justice Central. The motion asks the court to award McDonald’s with expenses and attorney’s fees incurred in connection with the complaint Allen filed in May and strike the lawsuit’s “frivolous allegations and demands.” Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here The lawsuit Allen filed in California state court in Los Angeles in May alleges that McDonald's is not on track to meet a 2021 pledge to increase spending with Black-owned media and production companies to 5% from 2%. McDonald's has maintained that it is on track and has brought on new media partners. That complaint followed a discrimination lawsuit Allen filed against McDonald’s in May 2021, seeking $10 billion in damages and alleging McDonald’s discriminated against his companies through racial stereotyping. Also read: How McDonald's and other big brands are spending on Black-owned media In the motion filed this week, McDonald’s alleges that Allen’s companies were using the second lawsuit to pressure it into settling the 2021 lawsuit. “The complaint was filed for the improper purpose of harassing McDonald’s and coercing it to settle the parties’ federal litigation,” according to the motion, which filed this week in California state court in Los Angeles. McDonald’s alleges in the filing that Allen’s most recent lawsuit also misrepresents the size of the company’s annual national advertising budget and the level of its spending with Black-owned media companies. A hearing on the California state lawsuit is scheduled for Aug. 31, according to court documents. Skip Miller, an attorney representing Allen’s Entertainment Studio Networks, said in an emailed statement that the motion is legally unfounded and “an obvious bullying tactic.” “McDonald’s is wrong on the merits of our claim for racial discrimination in contracting, so they’re resorting to name calling and intimidation,” he said. “They’re flailing. Their tactic won’t work.” McDonald’s said in a statement that it remains on track to meet its goals for Black-owned marketing investments by the end of next year. It also said it will continue to fight against Allen’s allegations. “We will not allow Mr. Allen to misuse the legal process and perpetuate untrue narratives at our expense,” the statement said. “We will continue to contest his lawsuits and oppose his scheme to twist and mischaracterize McDonald’s progress to line his own pockets.” McDonald's advertising spend commitment was part of a broader push to improve diversity and inclusion that the fast-food chain made in recent years. It has also promised to diversify supplier and franchisee ranks and tied some executive compensation to meeting diversity goals. Allen has been sparring with McDonald's for years over discrimination allegations. Earlier this year, he took out a full-page ad in the Chicago Tribune soliciting support from activist investor Carl Icahn in his fight against what the ad said was “blatant racism” at McDonald's.

McDonald's files for sanctions against Byron Allen companies as part of ad spend court battle

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