Class Action Lawsuit Against Disney Company Is Moving Forward

Disney is in the headlines, and this time it’s not good press as a class action lawsuit against The Walt Disney Company moves forward. While it’s not the first legal action the company’s encountered, the nature of this massive lawsuit is alarming.

Litigation, a fun legalese term for arguing, has always been a method of finding order in chaos. There are two types: criminal and civil. The latter deals with money, while criminal punishments tend toward jail time or other corollary remedies.

And Disney’s no newbie when it comes to the courtroom, both in its shows and in the real world. There’s the lawsuit that cost Dwayne Johnson his job. The 2023 lawsuits in Florida became all the buzz. Arrests after recent illegal activity led to dozens facing legal action.

But, if you thought that one of these led to the class action lawsuit against the Walt Disney Company, you’d be wrong. In the end, it all comes down to the great greenback: money.

The class action lawsuit against the Walt Disney Company is a matter of securities fraud.

According to official records, the fresh legal action is a result of alleged false filings. The idea is that Disney used analytics to estimate the top and bottom lines. These figures turned out to be incorrect, to the estimation of $1.47 billion. The release of these Q4 reports caused a drastic stock downturn of 13.2%.

The official class action alleges, “Disney+ was suffering decelerating subscriber growth,  losses, and cost overruns,” and that “the true costs incurred in connection with Disney+ had been concealed by Disney executives by debuting certain content intended for Disney+ initially on legacy distribution channels (…)”

Essentially, the suit claims that Disney knowingly misled vested parties to the detriment of the plaintiffs. The lawsuit representing the allegedly injured parties is actively seeking those who meet the parameters. The deadline for participation is July 11, 2023.

What do you think about the class action lawsuit against the Walt Disney Company? Justice for consumers or simply vexatious? Let Inside the Magic hear your thoughts in the comments below!