Disney ‘Within Its Rights’ To Respond to DeSantis/Florida’s ‘Don’t Say Gay’ Law

Earlier this year, Disney investor Kenneth Simeone sued the Walt Disney Company, seeking records and communications between executives at the company over its response to the Florida law, saying that by losing its autonomy in Florida, Disney created “far-reaching” financial risks to him and other investors.

But Delaware Judge Lori Will ruled in favor of the Walt Disney Company, saying that the Board of Directors did not act negligently when it criticized Florida Governor Ron DeSantis and the Florida Legislature for its passing of the Parental Rights in Education Act, known by its critics as the “Don’t Say Gay” bill. As a result of that ruling, Disney did not have to turn over years of records, including internal emails between the directors, and Disney’s decision-making process will remain secret.

It was a big win for the Disney Company. And now, Judge Will is doubling down on her support for Disney in this case. At a Northwestern University securities conference, Will told the audience that Disney was within its rights to speak out against the controversial Florida law.

Will told the audience:

It’s perfectly within the board’s business judgment to step back and say, ‘Our employees are upset. Our creative partners are upset. This is going to harm us, and so we need to take a stance on this bill.

When the case was initially presented in her court, Will also criticized it, saying at the time that it was improperly brought to her courtroom by a conservative legal group.

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.

Since then, the Walt Disney Company has been involved in a legal battle with the Central Florida Tourism Oversight District and Florida Gov Ron DeSantis. Disney sued the Governor in Federal Court, claiming government retaliation and infringement on the company’s First Amendment Rights. Disney is also suing the Board of DeSantis appointees, seeking damages for violation of the Contract Clause of the Constitution. Disney wants the State Court judge to reinstitute the Reedy Creek Improvement District.

While Governor DeSantis has said he has “moved on” from the Disney Lawsuit and current Disney CEO Bob Iger has said he would like to “quiet the noise,” attornies for both sides are moving forward with their legal battles. The most recent twist saw lawyers for Governor DeSantis ask a Federal Judge to throw out the suit while Disney is seeking emails and documents from the governor. 

Despite what both sides are saying, this fight will likely continue, ending in the United States Supreme Court. 

We will continue to update this story at Disney Fanatic.