Bloomberg Law
March 13, 2023, 9:17 AM

This Week in Chancery Court: Florida’s LGBTQ Fight With Disney

Jennifer Kay
Jennifer Kay
Staff Correspondent

Florida’s retaliation against the Walt Disney Co. for its public opposition of the state’s so-called “Don’t Say Gay” law is at the center of a books-and-records trial this week in Delaware’s Chancery Court.

There’s also more SPAC stock fixes coming on the chancery calendar:

Tuesday: In re KLDiscovery Inc., Del. Ch., No. 2023-0194, hearing 3/14/23.

At issue: Vice Chancellor Lori Will continues to hold marathon hearings this week from companies seeking a court fix for stock issued during a blank-check merger. She’s already granted dozens of similar petitions over the last few weeks; a Feb. 21 opinion explains her rationale.

Court action: Monday’s hearings focus on petitions from KLDiscovery Inc., Archer Aviation Inc., Matterport Inc., AST SpaceMobile Inc., Sharecare Inc., The Beachbody Company Inc., Momentus Inc., Butterfly Network Inc., AdTheorent Holding Company Inc., Aeye Inc., Rover Group Inc., Nuburu Inc., Quantum-SI Inc., Nuvation Bio Inc., and Astra Space Inc.

More court action: Will also scheduled back-to-back hearings Friday for petitions from AltaEquipment Inc., IonQ Inc., AvePoint Inc., ATI Physical Therapy Inc., Danimer Scientific Inc., Stem Inc., Talkspace Inc., and Shift Technologies Inc.

Vivint, QuantumScape, MultiPlan, Others Get SPAC Stock Fixed Up

Wednesday: Simeone v. The Walt Disney Co., Del. Ch., No 2022-1120, trial 3/15/23.

At issue: A Disney investor claims the company created “far-reaching” financial risks by opposing Florida’s 2022 law limiting instruction on sexual orientation or gender identity in elementary schools. Kenneth Simeone wants the court to order Disney to turn over internal records about the decision that he says led to Disney losing control over tax and improvement issues at its Orlando-area theme park.

Court action: Trial in Wilmington, Del.

Disney Investor Seeks Files on Florida LGBTQ School Law Dispute

Thursday: Datnoff v. Behring, Del. Ch., No. 2022-0398, oral argument via Zoom 3/16/23.

At issue: Kraft Heinz Co. senior leaders and affiliates of 3G Capital Inc. face investor litigation claiming the private equity giant sold $1.2 billion in stock shortly before Kraft’s share price plummeted in 2018. The defendants include 3G co-founder Jorge Paulo Lemann, Brazil’s richest man, and another Brazilian billionaire, Alexandre Behring.

Court action: Motion to stay pending the resolution of two separate cases in Illinois federal court.

3G, Behring, Lemann Sued Over $1.2 Billion in Kraft Trades

To contact the reporter on this story: Jennifer Kay in Philadelphia at jkay@bloomberglaw.com

To contact the editors responsible for this story: Alexis Kramer at akramer@bloomberglaw.com; Andrew Childers at achilders@bloomberglaw.com

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