Disney faces Shareholder Lawsuit Threat as Deadline for Document Handover Approaches
BURBANK, CA – Disney is facing a potential lawsuit from shareholders demanding documents related to the suspension of Jimmy Kimmel, with a deadline for compliance rapidly approaching.Attorneys representing the shareholders requested the paperwork on September 24, giving Disney five business days to allow inspection and copying, citing concerns over potential breaches of fiduciary duty by the Board and executives. As of today, Disney has remained silent regarding the request.
The dispute centers on the recent suspension of Kimmel following controversial comments made during his show, and builds on a pattern of legal settlements involving the network. Last December, Disney and CEO Bob Iger reportedly paid at least $15 million to resolve a separate suit brought by Donald Trump over comments made by George Stephanopoulos. Now, with Kimmel’s return to air on September 26 and renewed affiliate agreements with Sinclair and Nexstar, shareholders are escalating their demands, signaling a willingness to pursue legal action if Disney doesn’t cooperate.
Attorney beth Wilkinson of kaplan Hecker & Fink LLP issued the demand, warning that failure to produce the requested documents could lead to a “derivative lawsuit” and the pursuit of “all available remedies.” A representative for Kaplan declined to comment on the current status of negotiations. Disney also did not respond to Deadline’s request for comment regarding the documents or the progress of the process.
The shareholder concerns stem from allegations that Disney executives may have acted improperly in their handling of the Kimmel situation and previous settlements. On September 23, Trump publicly threatened further legal action against ABC following Kimmel’s return, referencing the $16 million settlement from the prior case and suggesting a potentially larger payout this time.
The initial five-business-day deadline set by Kaplan has passed, intensifying the pressure on Disney to respond. The situation remains fluid, with the possibility of a lawsuit looming if a resolution isn’t reached.