NOTICE TO DISNEY CURRENT AND FORMER EMPLOYEES: Zamansky LLC Investigates The Walt Disney Company’s (DIS) Employee Disney Savings and Investment Plan for Possible ERISA Violations

NEW YORK--()--Zamansky LLC announces that it has commenced an investigation of The Walt Disney Company (“Disney”) (NYSE:DIS) on behalf of its current and former employees over the Disney Savings and Investment Plan (the “Plan”) for potential violations of the federal Employee Retirement Income Security Act (“ERISA”). ERISA imposes fiduciary duties to prudently manage and invest plan assets. We are investigating whether these duties were violated by the continued offering of the Sequoia Fund as an investment option for Disney’s employees under the Plan.

On January 8, 2016, a shareholder derivative lawsuit was filed against the Sequoia Fund’s investment managers and its board of directors. The complaint alleges that, in March 2015 and afterwards, the Sequoia Fund’s investment strategy outlined in its prospectus was violated by its large stake in Valeant Pharmaceuticals. The complaint alleges that the Sequoia Fund’s 25% limit on concentration in any one position was violated by its approximately 35% investment in Valeant. The compliant further alleges that the Sequoia Fund’s managers violated its “sell strategy” by failing to sell Valeant when its valuation became “excessive in relation to its expected earnings,” and that Valeant’s $236 per share price was 100 times its 2014 earnings.

In its recent 2015 annual report, the Sequoia Fund stated to investors that its “credibility as investors” had been bruised by the controversy around Valeant. They said the fund had experienced “higher-than-normal redemptions”, two shareholder lawsuits and the resignation of two out of five independent directors.

According to employee stock and investment fraud attorney, Jake Zamansky, Disney’s employees who purchased and held the Sequoia Fund through the Plan since at least 2014, may have suffered losses to their retirement savings. The Sequoia Fund’s high concentration in a speculative stock such as Valeant Pharmaceuticals raises serious issues over the prudent monitoring and oversight of the Plan under ERISA, he states. ERISA is designed to protect employees’ retirement savings from imprudent and inappropriate investments, Zamansky states.

What Current and Former Disney Employees Can Do

If you are an existing or former Disney employee who purchased and held the Sequoia Fund, through the Disney Savings and Investment Plan, please contact our firm for an evaluation of your rights. You can contact Jake Zamansky by telephone at (212) 742-1414 or by email at jake@zamansky.com.

About Zamansky LLC

Zamansky LLC is a leading stock law firm specializing in securities fraud, ERISA and employment class actions. We are investment fraud attorneys who represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover investment losses.

To learn more about Zamansky LLC, please visit our website, http://www.zamansky.com.

Contacts

Zamansky LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414
jake(at)zamansky(dot)com

Release Summary

Zamansky LLC investigates The Walt Disney Company's Employee Savings and Investment Plan on behalf of past and existing Disney employees for possible ERISA violations

Contacts

Zamansky LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414
jake(at)zamansky(dot)com