A U.S. judge has dismissed a $10 billion lawsuit against McDonald's Corp by the media entrepreneur Byron Allen, who accused the fast-food chain of racial discrimination for not advertising with Black-owned media outlets.
U.S. District Judge Fernando Olguin in Los Angeles wrote on Tuesday that two companies owned by Allen did not offer enough factual evidence to show that McDonald's "intentionally and purposefully discriminated against them."
According to Allen's complaint, McDonald's has refused to advertise with lifestyle channels owned by his Entertainment Studios Networks since their 2009 launch, or with The Weather Channel since Allen bought its parent Weather Group in 2018.
Allen said McDonald's allocation of ad dollars reflected the Chicago-based company's "racial animus and racial stereotyping."
Olguin said Allen can file an amended complaint.
"We will be adding more details to the complaint as directed by the court; and fully expect the case to go forward with discovery and trial," Louis "Skip" Miller, a lawyer for Allen, said in an email on Wednesday.
"This case is about revenue, not race," Loretta Lynch, a lawyer for McDonald's, said in a statement provided by the company. "We believe there is no evidence supporting this meritless case."
(Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama) ((firstname.lastname@example.org; +1 646 223 6317; Reuters Messaging: email@example.com))