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Legal troubles are nowhere near over for Disney.
Suing Disney
By now most people are aware of the ongoing legal turmoil brewing between Florida Governor Ron DeSantis and the Walt Disney Parks and Resorts. Shortly after Disney’s former CEO spoke out against the Parental Rights in Education Bill, the Governor signed Senate Bill 4-C into Law.
This effectively dissolved the Reedy Creek Improvement District (RCID), the special tax district that governed Disney. DeSantis appointed the Central Florida Tourism Oversight District (CFTOD) in its place. This all led to two lawsuits.
In addition, a Magic Key lawsuit was recently settled, and there is still an ongoing Annual pass holder lawsuit. But now there’s another to add to the never-ending (or so it seems) list of lawsuits involving Disney.
New Lawsuit
According to Deadline, film financier TSG claims that Disney used “nearly every trick in the Hollywood accounting book” to hoard hundreds of millions in profit. The lawsuit was filed in Los Angeles, California.
The suit names Twentieth Century Fox Film Corporation and The Walt Disney Company as defendants. It refers to the studio entity as “Fox” even though the entity owned by Disney is now called 20th Century Studios. But, that’s neither here nor there, I suppose.
“This windowing of film distribution is designed to maximize profits for the studios (and for stakeholders like TSG) by preventing one distribution revenue stream from cannibalizing another,” the lawsuit says. “When windows are collapsed on one another, however, the studio (and its investors) miss out on significant potential sources of revenue.”
In addition to the allegedly lost proceeds due to Disney’s distribution decisions, TSG believes that a resulting lack of cash flow impaired its ability to invest in films like Avatar: The Way of Water, which became a massive hit.
In short, they are suing Disney because they believe the company made movies that would benefit its own streaming platform. You may remember back in 2021 Scarlett Johansen sued Disney for breach of contract by opting to send Black Widow straight to Disney+.
We will see how this lawsuit pans out. Let us know your thoughts and share this post with a friend.
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