The Stourbridge Investments plaintiff alleges that the company used a fraud scheme to hide the extent of broadcast losses and to portray Disney+ subscriber growth as “stable.”
This isn’t the first time such accusations have been made: Stream spending was one of the factors behind Čapek’s removal from the CEO position in 2022 and Iger’s comeback. The lawsuit requires Disney and the defendants, including Iger and Capek, to reform corporate governance and internal processes to prevent future incidents.
Disney’s latest quarterly report showed streaming losses topped $500 million, but the company expects streaming to be profitable through 2024 despite ongoing writer strikes in the US.
Source: Ferra
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