Judge dismisses Disney's lawsuit alleging retaliation by DeSantis
Disney had alleged that Florida Gov Ron DeSantis and a state board unfairly retaliated against the company for criticizing state education policy
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A federal judge on Wednesday dismissed Disney’s lawsuit against Florida Gov. Ron DeSantis and members of a state board for allegedly retaliating against the entertainment giant after the company criticized the state’s limits on classroom discussion of sexuality in lower grades, according to a court filing.
DeSantis and other defendants in the case had argued that the lawsuit should be dismissed because Disney couldn’t sue them over constitutionally enacted state laws. Florida's Republican-led government had stripped Disney's control over a special development district that gave it autonomy over its theme parks, including the Walt Disney World Resort.
The dispute between Disney and DeSantis' administration began after the company criticized Florida's Parental Rights in Education Act, which was enacted in 2022. The law barred public schools from having "classroom discussion" or giving "classroom instruction" about sexual orientation or gender identity in kindergarten through third grade classrooms, as well as sexual discussions that go against state guidelines in all grades.
Opponents of the law criticized it as the "don't say gay" law, and Disney weighed in with a statement saying it "should never have passed and should never have been signed into law." The company added, "Our goal as a company is for this law to be struck down in the courts, and we remain committed to supporting the national and state organizations working to achieve that."
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Disney has been embroiled in a dispute with Florida Gov. Ron DeSantis over discussion of sexuality in lower grades. (Joe Raedle/Getty Images / Getty Images)
Following Disney's criticism, DeSantis and the Republican-controlled Florida legislature moved to strip Disney's self-governing authority over what was then known as the Reedy Creek Improvement District (RCID). The RCID had authority similar to a county government and was controlled by Disney, giving it virtual autonomy over theme parks like the Walt Disney World Resort.
Florida enacted a law in 2023 to reform the district, which was renamed the Central Florida Tourism Oversight District (CFTOD). New members were appointed to the restructured board who went on to void contracts the Disney-controlled board had approved before the changeover.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 103.25 | -0.12 | -0.12% |
Disney responded by suing the governor and the board members for allegedly punishing it for its political positions.
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Florida Gov. Ron DeSantis and the Republican-controlled legislature revoked Disney's governing authority over a special district covering Walt Disney World Resort. (Kevin Dietsch/Getty Images / Getty Images)
U.S. District Judge Allen Winsor of the Northern District of Florida, based in Tallahassee, granted the motions to dismiss made by DeSantis, the state commerce secretary and the CFTOD board members.
"In short, Disney lacks standing to sue the Governor or Secretary, and its claims against the CFTOD Defendants fail on the merits because 'when a statute is facially unconstitutional, a plaintiff cannot bring a free-speech challenge by claiming that the lawmakers who passed it acted with a constitutionally impermissible purpose," the judge wrote.
"At the end of the day, under the law of this Circuit, ‘courts shouldn’t look to a law's legislative history to find an illegitimate motivation for an otherwise constitutional statute.' Because that is what Disney seeks here, its claim fails as a matter of law," Winsor concluded.
A federal judge dismissed Disney's suit against Florida Gov. Ron DeSantis and the board he appointed to oversee the district that includes Walt Disney World Resort. (Joe Burbank/Orlando Sentinel/Tribune News Service via Getty Images / Getty Images)
A Disney spokesperson told FOX Business in a statement: "This is an important case with serious implications for the rule of law, and it will not end here. If left unchallenged, this would set a dangerous precedent and give license to states to weaponize their official powers to punish the expression of political viewpoints they disagree with. We are determined to press forward with our case."
"As stated by Governor DeSantis when he signed HB 9-B, the Corporate Kingdom is over," said DeSantis press secretary Jeremy Redfern. "The days of Disney controlling its own government and being placed above the law are long gone. The federal court’s decision made it clear that Governor DeSantis was correct: Disney is still just one of many corporations in the state, and they do not have a right to their own special government. In short — as long predicted, case dismissed."
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Disney shares closed down 0.94% after Wednesday's trading session.
Reuters contributed to this report.