What's Going On With Disney Stock Friday?

The Walt Disney Co DIS is now on the offensive, countering the board appointed by Governor Ron DeSantis, connected to its Florida-based theme parks. 

The heart of the dispute revolves around a set of development contracts spanning these venues.

Disney has filed a lawsuit in Florida's Orange County against the Central Florida Tourism Oversight Board, which was positioned by Governor DeSantis earlier this year. 

This move by Disney arrives after the state aimed to curtail its five-and-a-half-decade reign over a particular district Deadline reports.

Disney's Legal Push

Disney's legal cavalry, headed by Dan Petrocelli, seeks to ensure that the Oversight Board respects the previously agreed-upon development contracts with Walt Disney World. 

Earlier in the year, while under Disney's influence, the special district's board had greenlit these contracts. This move ensured that Disney's theme parks in Florida maintained a semblance of independence, even after changes to state laws. 

Following these alterations, DeSantis gained the power to select his preferred members for the district board, leading to its rebranding as the Central Florida Tourism Oversight Board.

The Oversight Board, primarily under the guidance of DeSantis, questioned the transparency of contracts between Disney and the Reedy Creek Improvement District. 

Things changed when the company opposed the "Don't say gay" law passed by Florida, which prevented the discussion of sexual orientation and gender in classes from kindergarten to grade 3.

Since then, DeSantis has been following retaliatory tactics, some of which included setting up a state prison on bordering land, raising taxes, and exploring the sale of state-owned utilities. 

DeSantis' board eyed cutting $8 million of the district's annual spending for law enforcement provided exclusively to Disney's properties.

Earlier this year, Disney took the issue to the federal courts, accusing Governor DeSantis and the Tourism Oversight District board of infringing upon its First Amendment rights, among others. 

Judicial Stance

Judge Margaret H Schreiber, presiding over the case, has thus far refrained from discarding the lawsuit brought forth by the DeSantis-backed board against Disney. 

More recently, the board pushed for a summary judgment. They emphasized numerous perceived issues in the contracts, one of the primary concerns being the extended delegation of governmental authority to Disney for an expansive 30-year period.

Price Action: DIS shares traded lower by 0.21% at $85.74 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.