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Disney had Finally Settled the Magic Key Lawsuit

Disney had Finally Settled the Magic Key Lawsuit

Disney has been working through a class-action lawsuit involving Magic Keys. It is finally settled.

Disney Magic Key Lawsuit

Credit: KtP

Some time ago, you might remember that Jenale Nielson filed a complaint pertaining to Magic Key passes. According to the Orange County Register, the complaint ascertains that Disneyland “falsely advertised their Magic Key passes.” Nielson filed this complaint on behalf of all Magic Key holders. What is the source of Nielson’s complaint?

The lawsuit claims, “Given that Disney advertised and promised that there would be no ‘blackouts’ for Dream Key Holders, Ms. Nielson was surprisedNielson reasonably believed ‘no blackouts’ meant she could use her Dream Key as long as the parks were not at capacity.

Ms. Nielson had purchased the Dream Key which was the highest tier. On dates when it showed Park Pass Reservations were unavailable for Dream Key Holders, there were still Park Pass Reservations for Guests purchasing daily park tickets. Therefore, “The problem was not that Disney had reached its capacity and therefore could not provide reservations to its Dream Key Holders…the problem was that Disney had decided to block out reservations so that they were only available to new purchases and were not available to Dream Key Holders.”

Credit: Disney

The suit claims that thousands of other Guests could have been affected in the same way. In fact, there are 103,435 members identified class members.

If you want even more background information, you can read the entire original story from fellow KTP writer Donna here.

A Settlement has Been Reached

Credit: Monica

All of this started back in 2021. And, after all this time, a settlement has finally been reached. Both Disney and Nielson agreed to settle the suit out of court.

It was initially a $5 million lawsuit. However, The Walt Disney Company agreed to pay out $9.5 million! This will be divided among class members in the amount of $67.41 each. After the initial payout and after associated fees and expenses, if the remaining amount exceeds $10 per class member, then members will receive a second payout. It all probably seems like a small amount, but such is the nature of class action suits with large classes.

Disney will pay out $9.5 million to class members in the Magic Key lawsuit.

According to the terms of the settlement, all eligible class members will receive an email in the future. Claim submission is not required.

What do you think about the terms of the settlement in the class action Magic Key lawsuit? Let us know in the comments. And, as always, feel free to share with people you think might be receiving a settlement or anyone who may find the story interesting.


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