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id: 723, Created by Stan Vick, Scout
Walt Disney (DIS) Case on Misleading
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- 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
19 May 2023
- Several affected $DIS Investors have already joined Case.
- Several reputable Law Firms have expressed interest to represent the Case vs. Walt Disney Co. in court.
- An initial Complaint was filed in the court of the Central District of California.
More affected investors are expected to join the Case and interested attorneys commit their support, further strengthening the Case.
28 August 2023
$DIS Case-related News:
According to a shareholder derivative action filed in Delaware federal court, Disney misled investors and hatched a scheme to keep $DIS stock prices high by hyping the profitability and subscriber growth of its streaming service Disney+ by shifting its operating expenses onto its legacy distribution channels.