Disney Threatens More Lawsuits Against Florida & Governor Ron DeSantis

Posted on by Mathew Corn Disney Parks, Uncategorized

The long-running legal battle between Disney and Florida Governor Ron DeSantis has a new development. According to the New York Times, Disney has sent letters to the office of Florida Governor Ron DeSantis this week, stating that the company would pursue more lawsuits over the state not complying with public records requests.

Per the Times, Disney filed a motion this past Friday, September 1, 2023, to amend its federal suit to remove complaints specifically related to the development contracts for the former Reedy Creek Improvement District — which is what the state lawsuit against the Central Florida Tourism Oversight District covers — and leave Disney’s accusation that DeSantis violated the company’s First Amendment rights intact. The motion was denied later that day by Judge Allen Winsor in the U.S. District Court for the Northern District of Florida in Tallahassee.

In that same motion, however, Disney disclosed that DeSantis and six other state entities had not complied with public records requests from May of this year, made by the company’s lawyers during the discovery process of both cases. This week, Disney mailed letters to the offices of DeSantis and the other state entities, “saying that the company would sue each under Florida’s public records act unless the requested materials were made available by Sept. 6.”

It has now been nearly four months since our request, and we have yet to receive any of the requested records or any substantive response asserting valid exemptions.”Adam Losey, Orlando lawyer working for Disney, as stated in one of the letters

Disney is asking for “all documents and communications, including but not limited to text messages, Signal messages, and WhatsApp messages on any devices” with the keywords “Disney” or “mouse,” among others, according to the letters.

This is the latest entry in the feud between Disney and DeSantis, coming just days after the revelation that Disney will be footing the bill on both sides of its lawsuit against CFTOD, who is suing the company in state court. DeSantis told CNBC back in August that he has “moved on” from his battles with The Walt Disney Company, and wants the whole issue to be dropped.

Man Thrown from Popular Disney Ride

Posted on by Mathew Corn Disney Parks, Magic Kingdom

A man is suing Disney after he was thrown from a ride…and it’s all Disney’s fault, he claims. Billy Williams is an Orange County, Florida, local who visits the Parks often. In 2022 he suffered a fall that he alleges caused him permanent damage. He’s now seeking compensation from WaltDisneyWorld.

On April 28, 2022, Williams was at Magic Kingdom with his wife having a magical day. The good times wouldn’t last, however. As the couple boarded their Doom Buggy on the Haunted Mansion, Williams suddenly fell. The ride uses Disney’s omnimover system, which means the vehicles never stop moving. Guests match the pace on a moving walkway and enter moving vehicles. This allows for rides to accommodate more guests per hour, which keeps lines shorter. It also avoids “the ferris wheel effect,” where rides are interrupted as others get on and off.

The problem came when the ride suddenly stopped when Williams was boarding. He claims a Haunted Mansion Cast Member “hit the emergency stop button” as he entered the vehicle, which caused him to lurch forward and fall out of the Doom Buggy and onto the ground. Cast Members must stop the ride occasionally if there is a problem or if someone with mobility issues enters or exits the ride.

Williams is suing Walt Disney Parks and Resorts, US, Inc., alleging the theme park was negligent for “failing to maintain the premises in a reasonably safe condition” and failed to correct or make him aware of the dangerous situation. In the lawsuit, filed in Orange County Courts last month, he is seeking $50,000, alleging that he has suffered “severe and permanent injuries” as a result of the fall.

disney world haunted mansion

Due to the ongoing nature the legal action, Disney has not commented at this time. It is unknown if Disney offered Williams any compensation or accommodation for his injuries when they were sustained last spring.

Disney’s CFO is OUT Amid Serious Allegations of Corporate Fraud

Posted on by Mathew Corn Uncategorized

An investigation is underway into claims by investors who say Disney execs engaged in unlawful business practices, including securities fraud, with regard to the success of Disney+.

A class-action lawsuit is mounting against The Walt Disney Company as shareholders have lodged complaints against the company about alleged dishonest business practices. The current investigation concerns whether three of Disney’s officers and/or directors engaged in those practices.

The Pomerantz Law Firm press release details the events that took place in late 2022 that have led to shareholders’ claims of wrongdoing on Disney’s part:

On September 21, 2021, Disney gave a virtual presentation at the Goldman Sachs Communacopia Conference. During the presentation, Chief Executive Officer Robert Chapek acknowledged that Disney+ subscriber growth had slowed in the fourth quarter of the fiscal year that ended on October 2, 2021. 

Disney CEO Bob Chapek talks park pass reservation system

On this news, Disney’s stock price fell $7.44 per share, or more than 4%, to close at $178.61 per share on September 20, 2021. 

On November 10, 2021, Disney reported its financial results for its fourth quarter and fiscal year ended October 2, 2021. Disney posted quarterly results that missed Wall Street’s already diminished expectations as the Company saw a dramatic slowdown in Disney+ subscribers. The Company added just 2.1 million customers during the quarter (the smallest quarterly gain since the service’s launch two years prior), revenue of $18.53 billion, and adjusted earnings per share of 37 cents – all of which were below consensus estimates of 119.6 million subscribers, $18.78 billion in revenues, and adjusted earnings per share of 49 cents.

On this news, Disney’s stock price fell $12.34 per share, or more than 7%, to close at $162.11 per share on November 11, 2021. 

Finally, on November 8, 2022, Disney issued a press release reporting the Company’s financial results for its fourth quarter and fiscal year ended October 1, 2022. Disney missed analyst estimates by wide margins on both the top and bottom lines. Revenue in the quarter grew just 9% to $20.15 billion, below estimates at $21.36 billion. Sales, at $20.2 billion, fell about $1 billion short of analysts’ projections. Earnings, excluding certain items, fell to 30 cents per share, missing the average estimate of 51 cents from analysts surveyed by Bloomberg. The Company’s DTC segment, which includes streaming services Disney+, ESPN+, Hulu, and Hotstar, reported a monumental operating loss of $1.47 billion compared to a $630 million loss in the same quarter the year prior. Revenue in the segment increased just 8% to $4.9 billion. The Company also reported a decline in its average revenue per Disney+ subscriber as more customers subscribed through a discounted bundle with the Company’s other services. Notably, the bundled offering made up about 40% of domestic subscribers, confirming that Disney was relying on short-term promotional efforts to boost subscriber growth while impairing the platform’s long-term profitability. 

On this news, Disney’s stock price fell $13.15 per share, or more than 13%, to close at $86.75 per share on November 9, 2022.

Disney’s then-CEO Bob Chapek was removed from his post back on Sunday, November 20–a move that sent shockwaves throughout the Disney community. Veteran CEO Bob Iger was reinstalled, returning to The Walt Disney Company under a two-year contract. On Thursday, Disney announced the stepping down of CFO Christine McCarthy, who will reportedly take a family medical leave beginning July 1, 2023. Her final day of leave, as well as her final day of employment with The Walt Disney Company, will be June 30, 2024. An interim CFO will take her place while the company searches for the next chief financial officer. No other details were shared.

Both Chapek and McCarthy have been named in the suit, as has Kareem Daniel, who was fired from The Walt Disney Company shortly after Chapek’s removal. The three are named for their alleged involvement in “drafting, producing, reviewing and/or disseminating false and misleading statements” regarding the success of the company’s streaming business, according to the 39-page document filed in the U.S. District Court for the Central District of California on May 12.

It remains to be seen whether McCarthy’s leave of absence is related to the suit.

Judge Puts a Wrench in DeSantis’ Plans Against Disney

Posted on by Mathew Corn Uncategorized

An important update has arrived regarding the ongoing legal battle between Governor Ron DeSantis and the Walt Disney Company.

If you follow Florida politics, it has been impossible to ignore the absolute mayhem that is the situation with the Reedy Creek Improvement District. It all started when Florida Governor Ron DeSantis proposed legislation that would affect the powers of special districts like the Reedy Creek Improvement District. The district was initially created by Walt Disney himself in the 1960s to give his company control over the development of the Walt Disney World Resort.

Disney is the largest taxpayer and explorer in the state of Florida, making it a sizeable threat to the Governor. Nevertheless, DeSantis has continued to fight back against Disney, thus drawing national attention to Orlando politics.

Ron DeSantis

While Disney fans and central Floridians have been aware of the squabble for a while, the situation became a national headline after it was announced that the Walt Disney Company would be seeing Ron DeSantis. The whole world has tuned in to see what will come of this high-profile lawsuit, which has elevated stakes due to the fact that DeSantis is a possible candidate for the Republican Party in the coming election.

Last week, DeSantis shocked the public when he filed a motion to disqualify the Judge assigned to the lawsuit. The Judge in question is Mark E. Walker, and DeSantis wants him removed because his “impartiality in this matter might reasonably be questioned.”

Just yesterday, a proposed briefing schedule and “forthcoming motions to dismiss” were revealed. Now, the judge has said that the court “will take no action.”

Bob Iger The Walt Disney Company CEO BuzzFeed Deal

This decision is because the Judge had determined that no further action could be made until it was figured out what would come from DeSantis’ wish to disqualify the judge. Judge Walker explained that “This court will take no action, scheduling or otherwise, in this case until it rules on the ending motion for disqualification.”

It will be fascinating to see what comes of this case once it is revealed if the Judge will be dismissed or now.

Scarlett Johansson Speaks Out on Disney Lawsuit

Posted on by Mathew Corn Uncategorized

Scarlett Johansson is one of the most famous and iconic actors in the Marvel Cinematic Universe. Her work in the role of Black Widow helped her become a household name. Unfortunately, what was once a perfect partnership has become a rocky relationship between Johansson and the Walt Disney Company.

In 2021, Johansson decided to sue the Walt Disney Company over the way they handled the mid-pandemic release of her movie, Black Widow. Johansson ended up walking away with a settlement of around $40 million. Now, the actress has decided to open up about what that process was really like for her.

Johansson Breaks Her Silence on Her Brutal Disney Lawsuit

Back in 2021, Scarlett Johansson, the star of Black Widow, took legal action against the Walt Disney Company over a breach her of contract. The Hollywood actress has accused the company of failing to honor their contract by releasing her movie Black Widow on Disney+ alongside its theatrical release. She alleged that this cost her millions of dollars in potential earnings.

Now, Ms. Johansson has shared her thoughts on the matter, stating that the move to release Black Widow on Disney Premier Access was “sad and disappointing.” She has been an integral part of the Marvel Cinematic Universe for over a decade, playing the iconic role of Natasha Romanoff, which she has now stepped away from.

black widow

In an interview with Variety, Johansson decided to speak out about what this situation was like for her. She says;

“I was sad and disappointed. But mostly sad. It was such a surreal moment because we were all isolated and just sort of emerging a little bit. I was also really heavily pregnant, too, which in a weird way was amazing timing. Suddenly, your entire attention is drawn to this miracle of life. So, I had the most wonderful distraction in the world and soon after had a beautiful baby.”

Disney Stabbed One of Their Biggest Starts in the Back

The decision by Disney to mess with one of its biggest stars has been deemed bizarre by many, especially since Ms. Johansson has been a loyal ambassador of the Walt Disney brand for several years.

Johansson’s agent, Bryan Lourd, was a fierce advocate for the actress during this process. He explained how furious he was over the way that Disney representatives were speaking of Johansson during the lawsuit, even going as far as to say she was showing a “callous disregard.” He says;

“I lost my mind and said, ‘How dare you make it seem like she’s not worth this money or that she somehow hasn’t earned it?’ She and I were very much in lockstep about what this was. And she had the conviction to let me fight back. A lot of people wouldn’t do that. And part of the reason she did it is because she thought, in the position she’s in, she had a responsibility not just to herself but to other people who were being confronted with this change.”

black widow

Ms. Johansson’s court case brought attention to the already existing problem faced by actors and studios. Actors have contractual agreements that stipulate monetary compensation based on the movie’s box office performance, which is difficult to measure when it is released on Disney+ or any other streaming platform. The lawsuit has raised important questions about how artists and filmmakers are compensated in the new world of digital streaming. These conversations need to be discussed in this new world.