A federal judge in California ruled that media mogul Byron Allen's $10 billion racial discrimination lawsuit against McDonald's can head to trial, according to a report.
Describing it as a "close call," U.S. District Judge Fernando M. Olguin found that Allen's allegations that the fast-food giant engaged in "racial stereotyping" by not advertising with Black-owned media companies should be heard by a jury, Variety reported.
"At a minimum, this is the type of case where the 'trial court is permitted, in its discretion, to deny even a well-supported motion for summary judgment, if it believes the case will benefit from a full hearing,'" Olguin said in a 25-page order, the outlet reported.
Allen accused McDonald's of denying his Entertainment Studios and Weather Channel advertising dollars and relegated the company to an "African American tier" that competes for a much smaller share of the advertising budget.
The result was the loss of millions of dollars in potential revenue.
"We have overwhelming evidence against McDonald's — who has been sued by its Black executives, Black franchisees, and their global head of security — for racial discrimination," Allen said in a statement, Variety reported.
"It is time for the McDonald's Board of Directors, stockholders, and civil rights organizations nationwide to call for the resignation of CEO Chris Kempczinski, who was caught sending racist text messages about Black and Hispanic people," it continued.
McDonald's welcomed the opportunity to make its case in court.
"We are prepared to show that this case is utterly baseless. McDonald's invested in media properties that aligned with the company's business strategy and, like any other rational business, declined to invest in those that had low ratings or failed to reach the company's target audiences," McDonald's said.
