Disney accused of breaching fiduciary duty, violating civil rights
Cinderella's Castle at Walt Disney World in Orlando, Florida
The Disney Corporation is facing accusations of breaching its fiduciary duty to stockholders and federal civil rights violations because of its leftist agenda that demands "diversity, equity and inclusion," an agenda that already has seen its productions skewing into an ideology rejected by families across America.
In a letter this week to Robert Iger, CEO, and other company officials, the America First Legal organization charges the company "has implemented facially illegal diversity, equity, and inclusion programs and policies."
The letter points out Iger "and the board, among your other fiduciary obligations, a have a duty of oversight and the responsibility for putting in place a reasonable and effective system of compliance monitoring and reporting relating to these mandates."
But, the letter said, the "fact that Disney has adopted facially illegal DEI policies is prima facie evidence that the company's internal controls have failed."
The letter notifies Disney of "mismanagement, including but not limited to intentional violations of federal civil rights laws, breaches of fiduciary duty, and the wasting of company assets."
The letter charges the company with "sacrificing the company's reputation and goodwill to serve a highly idiosyncratic and controversial political agenda that is offensive to the vast majority of the company's core customers."
That comes from "something other than the best interests of the company's shareholders," the letter charges.
It specifically cites Disney's full-throated participation in the nation's "culture wars."
And that risks "harming shareholder value.'
In fact, Disney has become a major player in a number of leftist ideologies in recent years that conflict with the traditional family values it had been known for portraying. Transgenderism, the LGBT ideologies, quotas and more now permeate its products, which in recent years have fallen far short of customer acceptance and financial expectations.
/1BREAKING — We sent a demand letter to Disney’s CEO & Board of Directors notifying them of, and documenting, the following:
Breach of fiduciary duty
THREAD: pic.twitter.com/7tNVKAA7ZB
— America First Legal (@America1stLegal) March 27, 2024
/1BREAKING — Following the disclosure of damning internal company documents, AFL has filed a formal EEOC complaint against @Disney alleging pervasive illegal discrimination based on race and sex.
THREAD: pic.twitter.com/LeI5ZOW3dq
— America First Legal (@America1stLegal) February 14, 2024
A report by the Post Millennial points out that the company's ideology now "lacks a rational business purpose."
The report explained the "demand letter" charges Disney's DEI ideology has "led to a significant drop in the company's value.
"The legal challenge comes in the wake of revelations made by American First Legal in February regarding Disney's alleged use of race and sex quotas in its hiring practices. The legal group filed a federal civil rights complaint with the US Equal Employment Opportunity Commission, citing public documents and internal memos as evidence of discriminatory hiring practices," the report explained.
"Specifically, the complaint alleges that Disney imposes hiring quotas, requiring at least 50 percent of a hiring group to be members of an 'unrepresented group' for various positions, both on and behind the camera. This policy reportedly extends to characters on screen, actors, as well as the overall crew and staff involved in Disney General Entertainment productions."
The legal team argues that Disney's use of race, ethnicity and sex in "hiring, training, compensation, and promotion" is unlawful and violates federal civil rights laws.
In fact, the report notes, Disney's market cap was about $341 billion in 2021, but now is only $207 billion, a plunge of 40%.
The company is accused of refusing to adequately disclose to shareholders the financial risk created by adopting its now-"woke" ideologies.
"Disney has displayed an inexplicable disregard for its customers and shareholders, forcing radical gender-expansive, anti-White, and anti-police content on families while providing warnings about harmful content on uncontroversial content," the legal group said.
WND had reported only a day earlier the corporation was folding in its fight with Florida Gov. Ron DeSantis over his moves to impose a state oversight board.
The company for decades essentially had been its own government, controlling the Reedy Creek Improvement District within which its facilities exist. DeSantis' new board now will make decisions for that district, independent of company control.
That move developed when the company publicly attacked the state for its move to create and protect parental rights for their children in schools. Specifically the concern was LGBT indoctrination for children.
Critics inaccurately called it the "Don't Say Gay" bill, as that was nowhere in the parental rights plan.
This week, the company said it was dropping its lawsuits against DeSantis over that fight.
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