The wheels of justice move painfully slow. Last week, Disney lost a Supreme Court First Amendment case that began in 2012. Its lawsuit against Florida Governor Ron DeSantis seems like it’s been going on forever, but it’s only been a few months. And that case is just barely getting started. There are still years of litigation ahead.
But the Walt Disney Company did get some occasional legal good news. On Tuesday, Delaware Judge Lori Will ruled that the Disney Board did not act negligently when it criticized Florida’s Parental Rights in Education Act, also known as the “Don’t Say Gay” bill. The lawsuit was brought by an investor in the Disney Company seeking records and communications related to the Company’s response to the law.
Former Disney CEO Bob Chapek remained silent while the Florida Legislature passed the “Don’t Say Gay” bill. Chapek only spoke after being pressured to do so by Cast Members at Walt Disney World. In retaliation for Disney speaking out against the law, Florida Governor Ron DeSantis stripped Disney of the Reedy Creek Improvement District, its self-governing district. They replaced it with the Central Florida Tourism Oversight District.
The Disney Company has since sued the Florida Governor and his new Board. Governor DeSantis counter-sued Disney and recently asked a judge to throw the case out.
Will did say that while it may have been a wrong business decision for Disney to speak out against the law, there was no evidence presented that showed the Board of Directors let their personal opinions influence the direction of the Company. Disney will not have to turn over years of records, including internal emails between the directors, and Disney’s decision-making process will remain secret.
The lawsuit was brought by investor Kenneth Simeone, who claimed that the Company’s response negatively impacted Disney’s stock and sought damages. In the ruling, Will criticized the suit and said that a conservative legal group improperly brought it.
With this legal victory, Disney CEO Bob Iger can now turn his attention to Disney’s lawsuit against the Florida Governor. But if this is any indication, it will be a while.
