The Walt Disney Company and several of the company’s current and former executives and directors were slapped with a shareholder derivative lawsuit on Friday in California Central District Court. The lawsuit, brought by the Brown Law Firm, claims that the defendants misled investors regarding the overall health of the company and the potential of its Disney+ streaming service. The suit alleges that company insiders improperly shifted costs from Disney+ to legacy platforms to make Disney+ seem more successful than it was. Counsel have not yet appeared for the defendants. The case is 2:23-cv-06389, Gervat v. Chapek et al.
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