Multimillion-dollar Settlement Against Walt Disney Company Approved

Recently, a federal judge approved a multimillion-dollar settlement of a class action lawsuit against The Walt Disney Company by livestream TV subscribers who claim they overpaid for their services.

This is just a preliminary order approving things, but the final approval hearing will be in 2027.

According to Couthouse News, DirecTV and YouTube TV subscribers will be able to make claims for part of the $50 million settlement. In 2022, the plaintiffs from five different states brought a class action lawsuit against The Walt Disney Company on behalf of all DirecTV Stream monthly subscribers since April 1st, 2019. YouTube TV subscribers joined a consolidated case in October 2023.

They sought relief, treble damages, attorney fees, costs, and compensation for overpayment for services. The plaintiffs said, “Disney and cable providers entered into carriage agreements that restrain competition, and that horizontal agreements between direct competitors functioned as one enterprise.” In October 2023, they denied Disney’s motion to dismiss the plaintiffs’ claim that it violated the Sherman Antitrust Act under the rule of reason.

One example cited in the case was Disney’s revenue from ESPN. They own 80% interest share in ESPN and make billions per year through affiliate fees from cable television networks. The cable companies pay affiliate fees for the right to broadcast a TV channel as part of a package or bundle.

The lawsuit claims that the ESPN bundling inflated the prices for YouTube TV and DirecTV Stream subscribers.

As many as 11 and 17 million people, respectively, could claim part of the settlement. It also included up to $15.11 million in attorney fees and costs.

Keep following AllEars for more updates.

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