Disney Execs, Board Sued for Misrepresenting Streaming Revenue

A shareholder sued The Walt Disney Co. executives and directors for misleading investors about the revenue the entertainment giant could generate from its streaming service Disney+, causing a significant decline in share prices after the company’s overall sales fell $1 billion short of projections.

Current and former Disney executives and board members artificially inflated the cost of company stock, failing to disclose that Disney+ was experiencing losses, cost overruns, and decelerating subscriber growth for almost two years, the shareholder says in the complaint filed Aug. 4 in US District Court for the Central District of California.

Disney+ was projected to ...