Investor Sues Disney Over Company Response to “Don’t Say Gay”

The Walt Disney Company and the word “lawsuit” are no strangers to each other.

Disney, especially in recent years, has been hit by a number of lawsuits. This includes the Scarlett Johansson lawsuit about Black Widow, Disneyland’s $5 million annual pass system lawsuit, a lawsuit about music from the Frozen 2 movie, and the recent Genie+ lawsuit. However, the newest lawsuit is about a Disney investor and Disney’s response to what critics call the “Don’t Say Gay” law in Florida.

Back in March of 2022, Disney responded to the Florida’s Parental Rights in Education Bill, or what critics call the “Don’t Say Gay” bill (which is now a law) and caused lots of controversy. Some criticized Disney for commenting too late on the topic while Florida politicians including Governor Ron DeSantis were unhappy with Disney’s stance on the bill.

After these comments, DeSantis passed a bill into law that would dissolve the Reedy Creek Improvement District — the system that allows Disney to control it’s own county government. Nothing permanent has been announced for what will become of Reedy Creek, however it could be replaced by a new district altogether.

Ever since then, this has still been a controversial topic and former CEO Bob Chapek’s response was looked at by some as a setback for Disney. Now, according to Bloomberg, a Disney investor Kenneth Simeone has filed a lawsuit in Delaware Chancery Court against Disney regarding the company’s opposition to the “Don’t Say Gay” law. So, what does the lawsuit entail?

Simeone has demanded that Disney turns over the internal records about the decision to oppose the “Don’t Say Gay” law. According to him, the Walt Disney Company created “far-reaching” financial risks by opposing the Florida law that limits teachings on sexual orientation and gender identity in elementary schools. Simeone also mentioned in the lawsuit that “Disney lost control over tax and improvement issues” at Disney World.

In this 22-page demand for records, Simeone said, “The financial repercussions from Disney’s actions, and resulting harm to the company and its stockholders, have been swift and severe.” Simeone also said that Disney could “lose the benefits of a one-of-a-kind deal that has existed between Disney and the state for more than half a century.”

The complaint is being called a “books and records” action — the demanded documents can be used to sue Disney over the decision to oppose the law in Florida. According to Bloomberg, Delaware judges typically grant these types of requests.

Disney spokeswoman Liz Jaeger didn’t return a call or email on Monday after seeking comment on the lawsuit.

Bob Chapek was the CEO of Disney when the comments were made, but as of November 2022, Bob Iger has taken over the position of CEO. We’ll let you know if any updates are made in the case.

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