Shareholders Foundation, Inc.

NYSE:DIS Shareholder Notice: Lawsuit Alleges Misleading Statements by the Walt Disney Company

A lawsuit was filed on behalf of investors in The Walt Disney Company (NYSE:DIS) shares over alleged securities laws violations.


San Diego, CA -- (SBWIRE) -- 05/30/2023 -- The Shareholders Foundation announced that an investor, who purchased shares of The Walt Disney Company (NYSE: DIS), filed a lawsuit against The Walt Disney Company over alleged violations of Federal Securities Laws.

Investors who purchased shares of The Walt Disney Company (NYSE: DIS) have certain options and for certain investors are short and strict deadlines running. Deadline: July 11, 2023. NYSE: DIS investors should contact the Shareholders Foundation at or call +1(858) 779 - 1554.

A Burbank, CA based The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide.

On November 8, 2022, Disney reported financial results for the fourth quarter and fiscal year end October 1, 2022.

Specifically, The Walt Disney Company's direct-to-consume segment reported a operating loss of $1.47 billion compared to a $630 million loss in the same quarter the prior year while revenue in the segment increased just 8% to $4.9 billion. The Walt Disney Company also reported a decline in its average revenue per Disney+ subscriber, as more customers subscribed through a discounted bundle with Disney's other services. Notably, the bundled offering made up about 40% of domestic subscribers, confirming that The Walt Disney Company was relying on short-term promotional efforts to boost subscriber growth while impairing Disney +'s long-term profitability.

Shares of The Walt Disney Company (NYSE: DIS) declined from $126.48 per share on August 16, 2022, to $86.28 per share on November 9, 2022, respectively $84.07 per share on December 28, 2022.

The plaintiff claims that between December 10, 2020 and November 8, 2022, the defendants made false and/or misleading statements and/or failed to disclose that Disney+ was suffering decelerating subscriber growth, losses, and cost overruns, that the true costs incurred in connection with Disney+ had been concealed by Disney executives by debuting certain content intended for Disney+ initially on Disney's legacy distribution channels and then making the shows available on Disney thereafter to improperly shift costs out of the Disney+ segment, that Disney Media and Entertainment Distribution ("DMED") had made platform distribution decisions based not on consumer preference, consumer behavior, or the desire to maximize the size of the audience for the content as represented, but based on the desire to hide the full costs of building Disney+ 's content library, that Disney was not on track to achieve even the reduced 2024 Disney paid global subscriber and profitability targets, such targets were not achievable, and such estimates lacked a reasonable basis, and that defendants had materially misrepresented the actual performance of Disney+, the sustainability of Disney+'s historical growth trends, the profitability of Disney+, and the likelihood that Disney could achieve its 2024 Disney+ subscriber and profitability targets.

Those who purchased shares of The Walt Disney Company (NYSE: DIS) have certain options and should contact the Shareholders Foundation.

Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739

About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.