Disney Park Exposed in Court, Ordered To Pay Guests Millions

More than 100,000 former Dream Key holders will get a check from Disneyland Resort after a class-action lawsuit settlement was finalized this week.

The Annual Passholder who filed the lawsuit, Jenale Nielsen of Santa Clara County, claimed that The Walt Disney Company deceived and misled Dream Key holders by advertising that the Annual Pass had no block-out dates but limiting Magic Key holder attendance via the Park Pass Reservation system. Park Passes were required to restrict crowds when Disneyland Park and Disney California Adventure Park re-opened during the COVID-19 pandemic.

Dream Key holders found that Disneyland Resort separated Park Passes between Magic Key passes and single-day tickets. Nielsen argued that listing Magic Key Park Pass Reservations as “unavailable” while slots were still open for single-day guests was misleading. Last year, a judge agreed and ordered The Walt Disney Company to pay $9.5 million to former Disneyland Dream Key holders to settle the lawsuit.

Disneyland Resort eliminated the Dream Key soon after Neilsen filed the lawsuit, replacing it with the Inspire Key. Like the Believe Key, Enchant Key, and Imagine Key, the Inspire Key comes with block-out dates. For the first time in years, Disneyland Resort didn’t offer an Annual Pass without block-out dates.

On Monday, March 4, U.S. District Court Judge David Carter finalized the Dream Key lawsuit settlement. The Walt Disney Company will spread $9.5 million among 103,431 Dream Key holders, equating to about $67 per Passholder. For filing the lawsuit, Neilsen will receive $5,000 of the $9.5 million. $7 million will be distributed among other Dream Key holders, while $2.5 million is reserved for legal fees.

Dream Key Passholders will automatically receive the payment via e-mail or check; they don’t need to enroll. According to The Orange County Register, Disney will automatically send the payment to the e-mail on file on each Dream Key holder’s account. If the e-mail bounces back or the Annual Passholder doesn’t have an e-mail on file, Disney will send the payment via “snail mail.” The settlement administrator plans to set up a site where those eligible can update their e-mail and home addresses.

Neilsen initially requested $379 per Dream Key Passholder, totaling $39 million in damages. The settlement saved The Walt Disney Company millions, while Annual Passholders will only receive about 5% of the cost of their $1,399 Dream Key.

As the years-long Magic Key lawsuit wraps up, Disneyland Resort’s lawyers won’t have a chance to catch their breath. This week, more than 115 maintenance workers filed a class-action lawsuit alleging the Southern California Disney park systematically underpaid and mistreated them.

According to The Los Angeles Times, the employees alleged the company failed to provide rest and meal breaks or required overtime pay. They also claimed Disney forced them to supply their own tools but didn’t pay double the minimum wage as required by California labor laws for employers who don’t provide the necessary equipment.

Assistant maintenance engineer Charlie Torres filed the lawsuit on behalf of 100 maintenance engineers and 16 assistant maintenance engineers. Torres seeks $1 million in backpay for himself and his colleagues.

The Walt Disney Company hasn’t commented publicly on the recently filed lawsuit.

Should Disneyland Resort have won or lost the class-action Dream Key Pass lawsuit? 

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