Facing litigation on multiple fronts, the Walt Disney Company has been served with another lawsuit from investors claiming that the company under former CEO Bob Chapek concealed the true costs of producing films and TV shows for its Disney+ streaming service.
In the 63-page lawsuit filed in the U.S. District Court of Delaware and obtained by TheWrap, Stourbridge Investments LLC alleges that Chapek, along with his lieutenant Kareem Daniel and former CFO Christine McCarthy, initially aired shows greenlit as Disney+ originals on legacy outlets like Disney Channel and then shifted the marketing and production costs of those shows onto those outlets “as part of a scheme to make Disney+’s financial performance appear more successful than it really was.”
Among the shows the plaintiffs cite as part of this strategy were “The Mysterious Benedict Society,” which was pulled from Disney+ this past May, and “Doogie Kameāloha, M.D.,” which ran...
In the 63-page lawsuit filed in the U.S. District Court of Delaware and obtained by TheWrap, Stourbridge Investments LLC alleges that Chapek, along with his lieutenant Kareem Daniel and former CFO Christine McCarthy, initially aired shows greenlit as Disney+ originals on legacy outlets like Disney Channel and then shifted the marketing and production costs of those shows onto those outlets “as part of a scheme to make Disney+’s financial performance appear more successful than it really was.”
Among the shows the plaintiffs cite as part of this strategy were “The Mysterious Benedict Society,” which was pulled from Disney+ this past May, and “Doogie Kameāloha, M.D.,” which ran...
- 8/29/2023
- by Jeremy Fuster
- The Wrap
Disney has been hit again with another lawsuit from investors over the alleged sleight of hand accounting the company used to hide streaming losses.
And once again, some big names, Bobs past and present, are being spotlighted.
“Plaintiff brings this action derivatively for the benefit of Nominal Defendant Disney against certain of the Company’s current executive officers and directors aiming to rectify the Defendants’ violations of the Exchange Act and breaches of fiduciary duties for issuing false and misleading statements and/or omitting material information in the Company’s public filings and proxy statements from approximately December 10, 2020 to the present,” says Stourbridge Investments in the August 23 filing over what it calls “materially misleading statements and/or omissions” the company and top executives made over the true financial state of affairs of Disney+ (read the Disney investors lawsuit here).
Though Stourbridge says it is bringing the action on behalf of Disney,...
And once again, some big names, Bobs past and present, are being spotlighted.
“Plaintiff brings this action derivatively for the benefit of Nominal Defendant Disney against certain of the Company’s current executive officers and directors aiming to rectify the Defendants’ violations of the Exchange Act and breaches of fiduciary duties for issuing false and misleading statements and/or omitting material information in the Company’s public filings and proxy statements from approximately December 10, 2020 to the present,” says Stourbridge Investments in the August 23 filing over what it calls “materially misleading statements and/or omissions” the company and top executives made over the true financial state of affairs of Disney+ (read the Disney investors lawsuit here).
Though Stourbridge says it is bringing the action on behalf of Disney,...
- 8/29/2023
- by Dominic Patten
- Deadline Film + TV
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