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Disney Settles Major Lawsuit After Tragic Death of Longtime Employee

In a case that has drawn attention from both Disney fans and legal experts alike, The Walt Disney Company has reached a tentative settlement in a lawsuit that claimed discrimination against a former cast member. Khatchatur Berberian, a dedicated Disney employee for more than 15 years, passed away in December 2024, just months after filing a lawsuit alleging age and ethnic discrimination.

The Walt Disney Company Water Tower in Burbank
Credit: Disney

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The lawsuit, filed in September 2023, claimed that Berberian, who had worked at Disney since 1998, was unfairly dismissed due to his Armenian heritage and his age. The legal battle centered on the way Berberian was treated during his time with Disney, particularly under the supervision of a new manager in 2014.

According to Berberian, the manager physically assaulted him after he revealed that he had heart disease. Even more concerning, Berberian alleged that the manager made derogatory comments about his ethnicity, calling him “hairy” and mocking his accent.

In addition to the harassment, Berberian claimed that his termination in September 2021, after being furloughed in 2020, was unfair. Disney told him that his position had been eliminated, but other younger employees in similar roles were not fired, which fueled his claims of discrimination.

The Walt Disney Company entrance sign on a bright, sunny day.
Credit: Disney

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As the lawsuit progressed, Berberian’s health took a tragic turn. On December 12, 2024, he passed away from cardiac arrest at the age of 53. His death came as a blow to his family and the Disney community, leaving many to wonder about the impact of the legal proceedings on his estate.

Despite his passing, the court allowed the executor of Berberian’s estate to continue with the lawsuit on his behalf.

In response to the legal claims, Disney initially pushed back. The company argued that the statute of limitations had expired and that Berberian was let go for legitimate, non-discriminatory reasons.

Mickey and Minnie Mouse, dressed in colorful, festive outfits, stand joyfully in front of a castle adorned with "70" banners at this Disney Park.
Credit: Disney Parks Blog

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However, in a surprising twist, Disney opted to settle the case instead of continuing the battle in court.

As of now, the details of the settlement remain confidential. Neither Disney nor the estate has disclosed whether the company admitted to any wrongdoing or the amount involved in the settlement. The agreement is expected to be officially filed by September 30, 2025, and many are left wondering if this settlement serves as an implicit acknowledgment of guilt or merely a way to avoid further public scrutiny.

While the specifics of the settlement may remain under wraps, it is impossible to ignore the impact this case has had on those involved. Was Disney justified in settling the lawsuit after the untimely death of a long-time employee? And what does this say about the company’s practices when it comes to employee treatment and diversity?

Now that the case is drawing to a close, we invite you to share your thoughts. Do you believe Disney’s decision to settle indicates an admission of fault, or do you think it was simply a business move? How do you feel about the company’s handling of such serious allegations?

Krysten Swensen

A born and bred New England girl living the Disney life in Southern California. I love to read, to watch The Golden Girls, and love everything to do with Disney and Universal. I also love to share daily doses of Disney on my Disney Instagram @BrazzleDazzleDisney!

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