Summary
Disney is facing a lawsuit from investors who accuse the company of lying about its losses related to Disney+ streaming service.
Disney is accused by investors of hiding the actual losses of Disney+ and providing false information that the platform would become profitable by the end of 2024. Additionally, the lawsuit claims that Bob Chapek, Disney's former CEO, employed tactics such as airing Disney+ originals on the Disney Channel to create a misleading perception of success.
Disney is facing a lawsuit from investors alleging that they deceived them about the losses related to their streaming service, Disney+. Disney+ is a platform owned entirely by the company and offers a wide range of movies and TV series, including popular franchises like the Marvel Cinematic Universe and Star Wars. However, the service experienced difficulties this year, with 4 million subscribers leaving in the first three months of 2023.
The Hollywood Reporter and Deadline recently reported that Disney is being sued by investors who claim that the company concealed the losses associated with Disney+. The lawsuit alleges that Disney is dishonestly stating that the service will become profitable by the end of 2024. Additionally, the investors claim that the company's former CEO, Bob Chapek, aired Disney+ originals on the Disney Channel, such as The Mysterious Benedict Society, to create the illusion of greater success for the platform.
More to come...
Source: THR, Deadline
