Unite with Fellow Investors
Choose the Best Attorney
Follow Case Progress
id: 723, Created by Stan Vick, Scout
Walt Disney (DIS) Case on Misleading
What do I get by joining?
- You will get case updates and receive a payout in case of success
- If you would like to actively participate, you will be connected to the attorney
- No, you do not pay anything out of your pocket neither to us nor to attorney
10 Dec 2020Class period Start
08 Nov 2022Class period End
11 Jul 2023Lead Plaintiff motion deadline
- Walt Disney reported financial results missing analyst estimates by wide margins.
- $DIS declined over 13%.
- Investors suspect Walt Disney and its Leaders of misleading and failing to disclose important information.
On November 8, 2022, Walt Disney (DIS) reported financial results for Q4 and full 2022, missing analyst estimates by wide margins on both the top and bottom lines.
- Disney’s DTC segment reported a monumental 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.
- Disney 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 Disney was relying on short-term promotional efforts to boost subscriber growth while impairing Disney +’s long-term profitability.
On this news, the $DIS declined more than 13%, seriously damaging investors.
Taking all facts into account, Investors have reasons to suspect Walt Disney and its Leaders of misleading and failing to disclose that:
- Disney+ was suffering decelerating subscriber growth, losses, and cost overruns;
- 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;
- Disney 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; and
- 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 in fact.
Failure to Disclose,
Shock Event Date
08 November 2022
12 May 2023
Lead Plaintiff Deadline
11 July 2023