(Reuters) – A US judge has rejected a $ 10 billion lawsuit against McDonald & # 39 ;s Corp. by media entrepreneur Byron Allen, who accused the fast food chain of racial discrimination for not advertising with black-owned media.
U.S. Los Angeles District Judge Fernando Olguin wrote on Tuesday that two companies owned by Mr Allen did not offer enough factual evidence to show that McDonald & # 39 ;s "deliberately and purposefully discriminated against them."
According to Mr Allen & # 39 ;s complaint, McDonald & # 39; 39; s refused to advertise with lifestyle channels owned by his Entertainment Studios Networks since their launch in 2009, or with The Weather Channel since Mr. Allen bought its parent company, Weather Group, 2018.
Mr. Allen also said that McDonald & # 39 ;s spent only 0.3% of its $ 1.6 billion advertising budget in the United States in 2019 with black-owned media, although blacks represent 40% of fast-food customers, an allocation that reflected "racist animus and racial stereotypes. "
But the judge said Mr Allen did not show that his company pressed hard enough to contract with McDonald & # 39 ;s only to be rejected, or that McDonald & # 39 ;s treated comparable white owned networks better.
Judge Olguin said Mr Allen could lodge an amended complaint.  "We will add more details to the complaint as instructed by the court; and expect the case to proceed with the discovery and trial, "Louis" Skip "Miller, a lawyer for Mr. Allen, said in an email on Wednesday.
" This case is about revenue, not race "" We believe there is no evidence to support this merit case. "
McDonald & # 39 ;s promised in May to increase national advertising spending on black-owned media to 5% from 2% by 2024.