A Disney investor is demanding to see the internal communications from the Walt Disney Company over the company’s response to the state of Florida over the Parental Rights in Education Bill, aka “Don’t Say Gay Bill.”
The suit argues that due to Disney’s response and demands of Florida government the company is now facing a repeal of their special “Reedy Creek Improvement District” status. This special district status allowed the company to create it’s own self-governing, taxes, emergency services, codes, etc.
Disney once controlled their own infrastructure, and now they face losing the special status all together. The fall out could cost the company, and investors, a lot of money.
Investor Kenneth Simeone has filed a 22-page lawsuit in Delaware Chancery Court demanding a “books and records action.” Simeone wants to see the internal records relating to the company’s decisions involving their response to the divisive Florida Bill.
Simeone feels that the company’s response caused “far-reaching” financial risks for itself by opposing a Florida law limiting instruction on sexual orientation or gender identity in elementary schools.”
The complaint asserts that the Walt Disney Company’s choices have caused “financial repercussions” which caused “resulting harm to the company and its stockholders” due to Disney’s public outcries and threats in regards to the bill.
Bloomberg has mentioned Simeone filing in Delaware for “books and records” could actually happen as “Delaware judges often grant such file requests.” The news outlet also points out that these documents “can be used to sue Disney directors over the decision to oppose the Florida law.”
By releasing the internal documents it could potentially open up the “Disney directors” to a lawsuit from investors. Bob Chapek has been removed as CEO of the company, but he would most likely be a target of such suits if they came to pass. He was the one in charge at the time and the one who publicly denounced the bill.
For now it’s just a suit to obtain the internal records on the matter.
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Source: Bloomberg
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