Disney (DIS) and the state of Florida reached a settlement on Wednesday to end litigation over the company’s long-standing special tax district.
The district, previously known as the Reedy Creek Improvement District (RCID), allowed Disney to operate as a self-governing entity since its inception; however, Florida Governor Ron DeSantis seized control of the district last year following Disney’s opposition to the state’s “Don’t Say Gay” law. The law forbids instruction on sexual orientation and gender identity from kindergarten through third grade.
“We are pleased to put an end to all litigation pending in state court in Florida between Disney and the Central Florida Tourism Oversight District,” Jeff Vahle, president of Walt Disney World, said in a statement.
“This agreement opens a new chapter of constructive engagement with the new leadership of the district and serves the interests of all parties by enabling significant continued investment and the creation of thousands of direct and indirect jobs and economic opportunity in the State,” he added.
The high-profile Florida showdown has served as a years-long overhang for Disney as it fends off proxy battles and grapples with challenges that include a declining linear TV business, slower growth in its parks business, and losses in its streaming division.
According to the settlement, both parties “now express a mutual desire to resolve all disputes” related to pending litigation in Florida’s state court.
The settlement also included language that suggests Disney may drop its federal complaint against Gov. DeSantis “pending negotiations among other matters of a new development agreement between Disney and the District.”
Last month, Disney filed a notice of appeal after a federal judge dismissed its free speech case against the governor, determining the company’s position ultimately “lacked standing,” or the right to sue DeSantis and a separate government official.
Disney filed the federal lawsuit last April, alleging DeSantis and the CFTOD board launched a “targeted campaign of government retaliation” to punish Disney for its position on “Don’t Say Gay.”
Read more here and check out Yahoo Finance’s timeline of the saga below:
No Comment! Be the first one.