Black McDonald’s franchise owners’ lawsuit is narrowed after judge dismisses hundreds of claims

The decision does not determine whether the underlying discrimination allegations are true, but allows portions of the case to move forward.

A federal judge has dismissed most of a sweeping lawsuit brought by 48 Black McDonald’s franchisees who accused the fast-food giant of decades of racial discrimination, though portions of the case will continue.

U.S. District Judge Steven Seeger significantly narrowed the case Sunday, which included 480 claims against McDonald’s. The ruling comes years after Black owners first accused McDonald’s of steering them toward less profitable restaurants and follows a separate case in which McDonald’s reached a $33.5 million settlement with Black franchise owner Herbert Washington.

The lawsuit accused the company of steering Black franchisees toward underperforming restaurants, providing them less support and denying them opportunities allegedly available to white franchise owners.

The plaintiffs sought to pursue a broader pattern of alleged discrimination stretching back decades. Seeger rejected that approach for the individual claims, while also finding that numerous allegations involved conduct outside applicable statutes of limitations.

For some timely claims, the judge found that the franchisees had not alleged sufficient facts to support their claims of intentional race discrimination.

Seeger nevertheless allowed portions of the case to continue. Some franchisees can pursue claims involving benefits they allege McDonald’s provided to other owners but denied them, including certain forms of financial or rent relief, Reuters reported.

McDonald’s has denied discriminating against Black franchisees and sought dismissal of the lawsuit.

The suit is part of years of litigation over allegations of unequal treatment within the company’s franchise system. The Sept. 21 ruling does not determine whether all of the plaintiffs’ underlying discrimination allegations are true.

Instead, McDonald’s motion to dismiss was granted in part and denied in part, leaving surviving claims to proceed as the litigation continues.