The Walt Disney Company has found itself in some hot water with the shareholders of their company.
For decades, The Walt Disney Company has been a titan in the entertainment world. The company has also become one of the giant behemoths of Wall Street. Between their movies, Parks, and broadcasting ventures, Disney is a name that every American knows. However, not all think of the company in a fond light.
On June 12, 2023, an announcement was made regarding the Class Action lawsuit facing Disney. This comes after months of outrage from Disney shareholders who feel that they were intentionally misled by Disney about the company’s financial situation.
Was Disney Lying to Shareholders?
Earlier this year, shareholders became furious with the Walt Disney Company. Their anger came from feeling like they were left in the dark about the company’s financial status. A class action lawsuit began to take shape with some very specific targeted points of contention.
Shareholders felt misled and/or lied to about Disney+, mainly regarding their massive subscriber loss. The initial complaint, which was filed in the U.S. District Court for the Central District of Califonia, explained that the Walt Disney Company,
“repeatedly misled investors about the success of the Disney+ platform by concealing the true costs of the platform, concealing the expense and difficulty of maintaining robust Disney+ subscriber growth, and claiming that the platform was on track to achieve profitability by 2024.”
Dates Set for Lead Plaintiff Deadline
As of this morning, the Law Offices of Vincent Wong issues a statement announcing that the class-action lawsuit has commenced. Investors who purchased between December 10, 2020, and November 8, 2022, are able to contact Vincent Wong about their options for potential recovery of their lost investment.
The announcement also included the full details of the action. The statement reads;
“ABOUT THE ACTION: The class action against Disney includes allegations that the Company made materially false and/or misleading statements and/or failed to disclose that: (a) Disney+ was suffering decelerating subscriber growth, losses, and cost overruns; (b) the true costs incurred in connection with Disney+ had been concealed by Disney executives by debuting certain content intended for Disney+ initially on Disney’s legacy distribution channels and then making the shows available on Disney+ thereafter in order to improperly shift costs out of the Disney+ segment; (c) Disney Media and Entertainment Distribution had made platform distribution decisions based not on consumer preference, consumer behavior, or the desire to maximize the size of the audience for the content as represented, but based on the desire to hide the full costs of building Disney+’s content library; (d) the Company was not on track to achieve its 2024 Disney+ paid global subscriber and profitability targets, that such targets were not achievable, and that such estimates lacked a reasonable basis in fact; and (e) as a result of (a)-(d) above, defendants had materially misrepresented the actual performance of Disney+, the sustainability of Disney+’s historical growth trends, the profitability of Disney+, and the likelihood that Disney could achieve its 2024 Disney+ subscriber and profitability targets.”
If you fit the criteria for this class-action lawsuit, the deadline to be appointed as a lead plaintiff is July 11, 2023. Any questions can be answered by reaching out the Vincent Wong, Esq, or filling out his form.