Lani
08-16-2002, 03:56 PM
Disney Shareholders Sue over 'Pooh' Dispute (http://story.news.yahoo.com/news?tmpl=story2&cid=599&ncid=762&e=8&u=/nm/20020816/media_nm/media_disney_suit_dc_1) - Yahoo News, 8/16/02
Accusing the Walt Disney Company of failing to disclose information about a royalty payments dispute over "Winnie the Pooh" that could cost the company hundreds of millions of dollars, a group of the company's shareholders has filed a lawsuit that seeks class-action status for shareholders who bought Disney stock between Aug. 15, 1997 and May 15 of this year. The suit, which seeks compensatory damages of an unspecified amount, names both Michael Eisner and CFO Thomas Staggs.
The suit claims Disney concealed from shareholders the potential for a huge royalty payout to family-owned Stephen Slesinger Inc., which licensed "Pooh" merchandise rights to Disney in 1961, then sued Disney in 1991, claiming royalties had been under-reported or not paid at all.
According to Friday's new suit, Disney should have reported the potential impact to shareholders sooner, but did not. The suit alleges Disney's failure to disclose was a deliberate misrepresentation to inflate Disney's stock price.
Accusing the Walt Disney Company of failing to disclose information about a royalty payments dispute over "Winnie the Pooh" that could cost the company hundreds of millions of dollars, a group of the company's shareholders has filed a lawsuit that seeks class-action status for shareholders who bought Disney stock between Aug. 15, 1997 and May 15 of this year. The suit, which seeks compensatory damages of an unspecified amount, names both Michael Eisner and CFO Thomas Staggs.
The suit claims Disney concealed from shareholders the potential for a huge royalty payout to family-owned Stephen Slesinger Inc., which licensed "Pooh" merchandise rights to Disney in 1961, then sued Disney in 1991, claiming royalties had been under-reported or not paid at all.
According to Friday's new suit, Disney should have reported the potential impact to shareholders sooner, but did not. The suit alleges Disney's failure to disclose was a deliberate misrepresentation to inflate Disney's stock price.