Disney Seeks Dismissal Of Lawsuit Alleging 'Backroom Deals' As Attention Shifts To Battle Against Florida Governor Ron DeSantis

The CFTOD lawsuit, filed in May, aims to invalidate any alleged "backroom deals" made in Disney's favor with a former district board, claiming they violate state law. Disney argues that the lawsuit should be dismissed as the agreements from the past board have already been nullified by the state.

The CFTOD has requested that Judge Margaret Schreiber allow its case to proceed, arguing that the federal case against DeSantis would be impacted. The district stated in a court filing, "If Disney's contracts are void, nearly all of Disney's claims in the federal case disappear."

July 15, 2023

A ruling in favor of Disney would allow the company to focus on its federal case against DeSantis, in which Disney claims the governor violated its right to free speech. The case stems from legislation signed by DeSantis in February, establishing a state control board and requiring Disney to pay taxes to the state, thereby revoking its self-governing status. Disney filed the lawsuit in April, alleging a "targeted campaign of government retaliation" that unfairly punishes the company.

DeSantis also signed H.B. 1557, known as the "Don't Say Gay" bill, in March 2022. The bill prohibits teachers from discussing gender identity and sexual orientation before the fourth grade. Disney faced criticism for not publicly opposing the bill, but Disney CEO Bob Chapek stated, "We were opposed to the bill from the outset, and we chose not to take a public position because we felt we could be more effective working behind the scenes directly with lawmakers on both sides of the aisle."

Disney's request for the dismissal of the CFTOD lawsuit will allow the company to focus its efforts on the federal case against DeSantis. The outcome of these legal battles will have significant implications for Disney's operations in Florida and its ongoing relationship with the state government.