An investor in The Walt Disney Company has filed a lawsuit against the entertainment giant over its ‘woke’ condemnation of Florida’s parental rights law.
Kenneth Simeone demanded that Disney turn over its internal records about its opposition to the state law which bans schools discussing gender and sexuality issues with junior students below Grade Four.
Mr. Simeone’s lawsuit claims the company opened itself up to financial repercussions by taking a political stance.
It noted that the harm to the company and shareholders has been “swift and severe.”
CBN News reports Disney’s theme parks lost special tax privileges and a great deal of autonomy in their operations which could leave the company with billions of dollars of debts.
The company has also made an enemy of Florida’s popular conservative Governor Ron DeSantis who is one of the frontrunners to be the Republican candidate for US president in 2024.
Business analysts believe Mr. Simeone could use the internal records to sue the company and its directors on the basis that investors had a vested interest in the company making safe business decisions and that taking a political stance put Disney’s revenue and reputation at risk.
However, Disney could also argue that it was initially criticised for NOT condemning the Florida law which sparked an employees walkout and a backlash from progressive groups.
Legal experts say public opposition to the law is likely to be covered under corporation free speech laws upheld by the US Supreme Court.
The Disney board recently sacked its CEO and reinstated his predecessor Bob Iger in bid to shore up its revenue and reputation.
An NBC News survey taken in May found just 33% of Americans had a positive view of the Disney brand.
That was a 60% drop on a poll taken the year before.