Disney Accused of Misleading Investors About Streaming Revenue

The Walt Disney Co.'s controversial reorganization in October 2020 under a new CEO facilitated a scheme to hide steep costs associated with its Disney+ streaming service, an investor alleges in a proposed class action.

Disney, its then-CEO, Robert Chapek, and other executives are named as defendants in the suit, filed May 12 in the US District Court for the Central District of California by a pension fund.

They “repeatedly misled investors about the success of the Disney+ platform by concealing the true costs of the platform, concealing the expense and difficulty of maintaining robust Disney+ subscriber growth, and claiming that ...