Credit: DisneyThe Walt Disney Company’s business woes continue as it faces yet another lawsuit from its investors. This time, the suit specifically names Bob Iger and former CEO Bob Chapek as defendants.
Related: Iger Told to Sell Disney Park Assets Due to Major Stock Price Dips
Ever since Disney CEO Bob Iger returned to the company and took over from Bob Chapek, it seems that Disney has been hampered by controversy. While theme parks like Disney World and Disneyland Resort continue to perform well, much criticism has been thrown at the various films and TV series that have come from their studios.
On top of that, many of Iger’s business decisions, including laying off over 7000 employees and cutting content, have received adverse reactions from the public at large. And this isn’t even mentioning the extreme reaction to his statements regarding the WGA and SAG-AFTRA Strikes.
Many of these decisions have resulted in multiple lawsuits and attacks directed at the Walt Disney Company, ranging from Republican Governor Ron DeSantis and the state of Florida to the company’s own shareholders. And it looks like Disney can add yet another lawsuit to its list, this time targeting its alleged deceitful statements regarding Disney+’s finances.
Bob Iger, Bob Chapek, and Other Executives Accused of Issuing “False and Misleading Statements”
Related: “Tone Deaf” Bob Iger Becomes the New Chapek
The Walt Disney Company is facing yet another lawsuit from investors over “materially misleading statements and/or omissions” regarding the financial state of affairs of Disney+. According to an August 23 filing from Stourbridge Investments, the company has been making statements and omitting information regarding Disney+ “from approximately December 10, 2020, to the present.”
Despite claiming this is to help protect the company, Stourbridge Investments specifically names Disney as well as numerous current and former high-level executives as defendants, including CEO Bob Iger, former CEO Bob Chapek, former CFO Christine McCarthy, and ex-Disney Media & Entertainment Distribution Chairman Kareem Daniels.
Related: Bob Iger “Destroying” Disney, Petition Calls for Immediate Resignation
In the lawsuit, Stourbridge further claims, “To conceal these adverse facts, defendants engaged in a fraudulent scheme designed to hide the extent of Disney+ losses and to make the growth trajectory of Disney+ subscribers appear sustainable and 2024 Disney+ targets appear achievable when they were not.” The investor continued, “Specifically, defendants used the newly created DMED to inappropriately shift costs out of the Disney+ platform and onto legacy platforms.”
Through the lawsuit, Stourbridge Investments is seeking to earn financial restitution and put more power into the hands of the board instead of individual executives. This could mean a massive change for the Walt Disney Company, potentially changing its decisions from more creative endeavors to being purely driven by business. While it’s understandable that shareholders are angry, this could spell even more disaster for Disney as a whole.
Do you believe Disney deliberately hid their declining Disney+ numbers? Let Inside the Magic know in the comments down below!