In a significant ruling today, a Delaware judge concluded that The Walt Disney Co. board did not act negligently when it criticized a sexual identity bill signed by Florida Governor Ron DeSantis. The case, which was said to be improperly directed by a conservative legal group, has been closely watched by shareholders and LGBTQ activists alike.
The ruling by Judge Lori Will of Delaware’s Court of Chancery effectively means that Disney will not be required to disclose internal records, including years of board members’ emails, that were sought by shareholder Kenneth Simeone. Simeone had filed a lawsuit against Disney in December, claiming that he wanted the records to investigate possible wrongdoing by directors in connection with the company’s decision to publicly criticize the 2022 law, known by critics as the “don’t say gay” law.
While Judge Will acknowledged that the company’s response to the bill could be viewed as a questionable business decision, the evidence presented during the trial demonstrated that the directors did not allow their personal views to dictate the company’s stance. This ruling protects the company from having to disclose sensitive internal communications and sets a precedent regarding the role of shareholders in investigating potential conflicts within a corporation.
The lawsuit not only highlighted the clash between Disney and Governor DeSantis but also shed light on the Thomas More Society, a non-profit law firm that champions conservative causes. The judge found that the lawsuit was brought to benefit this organization, as they were funding Simeone’s legal costs. However, Judge Will emphasized that a corporate records lawsuit should not be used as a platform to advance personal beliefs or ideological agendas.
Both Kenneth Simeone and his lawyer, Paul Jonna, who is a special counsel for the Thomas More Society, have yet to respond to the ruling. Similarly, Disney has not provided an immediate comment regarding the court’s decision.
This ruling serves as a significant development in the legal landscape surrounding LGBTQ rights and corporate responsibility. As the case came to a close, its implications for the ongoing battle between “woke Disney” and Governor DeSantis, who is vying for the Republican presidential nomination, cannot be ignored. The outcome will undoubtedly reverberate within the LGBTQ community and beyond, sparking further discussions about the role of corporations in advocating for social issues while balancing the interests of shareholders and stakeholders.