Media mogul's $10B McDonald's discrimination suit will go to trial, federal judge rules
Published On Dec 4, 2024, 9:21 AM
A federal judge has decided that the $10 billion racial discrimination lawsuit against McDonald's, filed by media mogul Byron Allen, will go to trial. Allen claims that McDonald's engaged in racial stereotyping by not advertising with Black-owned media outlets and relegating his companies to a smaller advertising budget. The suit highlights that despite nearly 40% of its customer base being Black, McDonald's allocated a very small percentage of its advertising budget to Black-owned media. Allen argues that this discrimination has cost his companies significant revenue.
Stock Forecasts
MCD
Negative
The ongoing trial could heighten McDonald's risk regarding public relations and stock performance. If the case gains significant media attention or results in a verdict against McDonald's, this could adversely impact investor confidence, leading to potential sell-offs. On the other hand, if McDonald's is cleared of culpability, this could stabilize its stock, but in the meantime, uncertainty could weigh negatively on its share price.
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