McDonald’s has settled a $10 billion lawsuit with Byron Allen’s Allen Media studios, resolving allegations that the corporation discriminated against media outlets owned by Black individuals.

Both Allen’s companies and mcdonald’s issued a joint statement on Friday,announcing their agreement to settle the pending litigation. Last year, U.S. District Judge Fernando Olguin suggested McDonald’s might have infringed upon federal and state civil rights regulations by maintaining a separate advertising structure for companies whose content is aimed toward Black audiences.

“We are pleased to find a resolution that maintains our business relationship,” Allen’s Entertainment Studios and The weather Channel said in a statement. “During the course of this litigation, many of our preconceptions have been clarified, and we acknowledge McDonald’s commitment to investing in Black-owned media properties and increasing access to opportunity. Our differences are behind us, and we look forward to working together.”

the settlement occurred before the lawsuit was scheduled to go to trial.The financial details of the agreement remain confidential.

The release stated, “The parties reached a confidential commercial agreement whereby McDonald’s will continue to purchase advertising from ESN in a manner that aligns with its advertising strategy and commercial objectives and ESN will dismiss its lawsuit against McDonald’s in the United States District court for the Central District of California.” It was also noted that “Under the terms of the agreement, which are confidential, McDonald’s is not admitting any wrongdoing, and the ads sold will, as per all such commercial deals, be priced at market value.”

“We are pleased that Mr. Allen has come to appreciate McDonald’s unwavering commitment to inclusion, and has agreed to refocus his energies on a mutually beneficial commercial arrangement that is consistent with other mcdonald’s supplier relationships,” McDonald’s USA, LLC said. “Our company’s unique three-legged stool model relies on mutual respect, and we look forward to ESN’s contributions to the betterment of our system.”

“We are pleased to find a resolution that maintains our business relationship.”

background on Advertising and Discrimination Lawsuits

Understanding the context of this settlement requires a look at advertising spending trends and the legal framework surrounding discrimination claims. Hear’s a breakdown: