A Walt Disney Co. shareholder has sued the entertainment giant, asserting the company’s political battle with Florida Gov. Ron DeSantis put stockholders at risk.
Investor Kenneth Simeone seeks the release of internal records about Disney’s opposition to Florida’s Parental Rights in Education law — which ultimately caused DeSantis and GOP lawmakers to strip Disney of its home-rule powers over its property in Orlando.
That included the power to levy taxes and make infrastructure improvements.
“The financial repercussions from Disney’s actions, and resulting harm to the company and its stockholders, have been swift and severe,” Simeone argued in court records.
Simeone maintains that Disney’s criticism of the law led to “far-reaching” adverse implications for stockholders.
Bloomberg, which also reported on the action, noted that the lawsuit actually acts as a lever to future legal action against the company’s board of directors by forcing Disney to open its books.
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The law at issue bars Florida school districts and classroom teachers from implementing lesson plans rooted in sexual orientation or gender identity in grades K-3.
Disney remained largely silent as the bill made its way through the Legislature.
But former CEO Bob Chapek eventually caved to pressure from leftist activists. Disney said publicly the law should never have passed and vowed that it would fight to repeal it in the Legislature or overturn it in the courts.
Chapek was eventually fired as the company’s financial and artistic performance wilted after the standoff with DeSantis.
Disney’s stock price is down 39% this year.
It’s closing price on Wednesday, about $94 a share, is the lowest since the early days of the pandemic.
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