Disney has recently narrowed its federal lawsuit against Florida Governor Ron DeSantis to center on the claim that he engaged in political retaliation against the company.
In this updated legal action, Disney has chosen to omit various other claims it initially made in the case. These included allegations that the state violated Disney’s contractual rights, seized property without compensation, and infringed upon its due process rights during a yearlong dispute over a special tax district encompassing Disney World, as reported by Bloomberg News.
The revised lawsuit significantly reduces the scope of the original suit, with Disney explaining that it is now addressing these claims in a separate state-level lawsuit.
A spokesperson for Governor DeSantis responded with a statement, welcoming Disney’s withdrawal of all claims challenging his legislative actions.
Disney, in a statement to CNBC, emphasized its commitment to vigorously defending its contracts. These agreements, according to Disney, will determine whether the company can invest billions of dollars and create thousands of new jobs in Florida.
Earlier this year, Disney hinted at discontinuing the construction of a billion-dollar office complex, citing changing business conditions. Josh D’Amaro, Disney’s Chairman of Theme Parks and Consumer Products, stated that this was a difficult but necessary decision.
The dispute between Disney and the 44-year-old governor stemmed from DeSantis stripping Disney of control over a special tax district established in the 1960s, granting Disney unique privileges not extended to other companies in the state.
Disney’s plan to establish a Lake Nona campus, announced nearly two years ago, never materialized. DeSantis’ Press Secretary Jeremy Redfern noted the uncertainty surrounding the project at the time, given Disney’s financial challenges, falling market capitalization, and declining stock price.
Disney had already laid off 4,000 employees recently, and further job cuts were anticipated due to the company’s financial difficulties.
In its lawsuit against the state of Florida, Disney claims to be the victim of government retaliation. Disney CEO Bob Iger hinted at possible retaliation by withholding development plans in the state during a recent earnings call, questioning whether the state wanted Disney to invest more, employ more people, and pay more taxes.
Nevertheless, D’Amaro confirmed in his statement that Disney still intends to invest $17 billion in Walt Disney World and create 13,000 jobs over the next decade.
Despite some Republican attempts to criticize DeSantis over the Disney dispute, recent polling suggests that Disney is not particularly popular among Republican voters on this issue.