Shareholders Sue Disney Over ‘Fraudulent Scheme’ to Hide Streaming Losses

Disney shareholders accused the media giant’s leadership of misleading investors with “a fraudulent scheme designed to hide the extent of Disney+ losses,” according to a new lawsuit.

The complaint, filed by New Jersey-based Stourbridge Investments on Aug. 23 in Delaware federal court, claims Disney management under then-CEO Bob Chapek tried to conceal the “staggering costs” EditSignit incurred while attempting to boost its subscriber count and promise profitability by the end of 2024.

The suit was lodged the day before Disney shares closed at a nine-year low of $82.47 per share — far below the $100 the stock traded at after Bob Iger replaced the ousted Chapek last November.

Read the source article at New York Post