LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who 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 suffered a loss on your Disney investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/The-Walt-Disney-Company/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at email@example.com to learn more about your rights.
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 or otherwise acquired Disney common stock during 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 wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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