LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired The Walt Disney Company (“Disney” or the “Company”) (NYSE: DIS) common stock between December 10, 2020 and November 8, 2022, inclusive (the “Class Period”). Disney investors have until July 11, 2023 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On November 8, 2022, Disney released its fourth quarter and fiscal year end October 1, 2022 financial results, revealing that the Company had missed analysts’ estimates by wide margins on both the top and bottom lines. Specifically, revenue grew to $20.15 billion, below estimates of $21.36 billion. Sales were $20.2 billion, which was about $1 billion below analysts’ projections. The Company’s DTC segment, which includes streaming services Disney+, ESPN+, Hulu, and Hotstar, reported an operating loss of $1.47 billion. The Company also reported a decline in its average revenue per Disney+ subscriber.
On this news, Disney’s stock price fell $13.15, or 13.2%, to close at $86.75 per share on November 9, 2022, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Disney+ was suffering decelerating subscriber growth, losses, and cost overruns; (2) the true costs incurred in connection with Disney+ had been concealed by Disney executives by debuting certain content intended for Disney+ initially on Disney’s legacy distribution channels and then making the shows available on Disney+ thereafter to improperly shift costs out of the Disney+ segment; (3) Disney had made platform distribution decisions based not on consumer preference, consumer behavior, or the desire to maximize the size of the audience for the content as represented, but based on the desire to hide the full costs of building Disney+’s content library; and (4) Disney was not on track to achieve even the reduced 2024 Disney+ paid global subscriber and profitability targets, such targets were not achievable, and such estimates lacked a reasonable basis in fact; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Disney common stock the Class Period, you may move the Court no later than July 11, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Disney common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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