A federal judge has advanced a lawsuit against Disney from investors who claim that they were misled about the extent of the entertainment giant’s losses stemming from its lofty subscriber growth and profitability targets in the era of ousted CEO Bob Chapek.
U.S. District Judge Consuelo Marshall on Wednesday denied a bid by Disney to dismiss the lawsuit, finding that former company executives who allegedly devised a plan to make it appear that its streaming platform could reach Netflix-like scale may have “engaged in deceptive conduct.”
Related Stories
The complaint alleged that Chapek aimed to hide Disney+ costs and make forecasts that it would be profitable by 2024 believable by overhauling the executive leadership structure and airing certain shows meant to be streaming originals on legacy TV networks to conceal losses amid slowing subscriber growth.
The lawsuit, filed in 2023, detailed Disney’s
...
Keep reading this article on Hollywood Reporter.