Disney Investor Sues Company, Alleges Their Criticism of Florida Parental Rights Bill Created Financial Risk

A Disney investor filed a lawsuit against the media company, alleging that its response to Florida’s Parental Rights in Education act fostered a “far-reaching,” “swift and severe” financial risk for the company and its stakeholders, Bloomberg reported. The complaint, which was filed in Delaware Chancery Court, was unsealed on Friday.

The Parental Rights in Education Act, also misleadingly referred to by left-leaning critics as the “Don’t Say Gay” bill, prohibits schools from teaching kindergarten through third-grade students about sexual orientation or gender identity. The act, which was signed into law by Florida Governor Ron DeSantis (R) in March, also forbids schools to restrict parents’ access to information about their children’s mental, emotional, or physical health.

Disney investor Kenneth Simeone filed a 22-page lawsuit against Disney, demanding that the company deliver its internal records regarding its objections to the Florida bill.

According to Simeone’s lawsuit, Disney’s criticism of the law created a significant financial risk to the company’s shareholders.

Despite DeSantis’ warnings to Disney not to publicly denounce the Parental Rights in Education bill, then-CEO Bob Chapek caved under pressure from angry employees who wanted the company to take a stand against the legislation. Consequently, Chapek condemned the bill and promised the company would suspend all political donations.

Shortly after the bill was signed into law, DeSantis revoked Disney’s special municipal district, referred to as the Reedy Creek Improvement District, which had been in place since 1967. As a result, the media giant lost control over tax and infrastructure decisions on its Florida amusement park property, the suit claimed.

“The financial repercussions from Disney’s actions, and resulting harm to the company and its stockholders, have been swift and severe,” Simeone alleged.

Bloomberg reported that Simeone’s lawsuit is a “books and records” action that requests documents that can be used to bring legal action against Disney directors responsible for speaking out against the law. The news outlet reported that Delaware judges often grant such requests.

In November, Chapek was removed from his position and replaced by predecessor and longtime Disney CEO Bob Iger.

Disney did reply to a request for comment, Bloomberg and the New York Post reported.

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