Law Firm Files Class Action Against Disney Over Pooh Brouhaha
The law firm of Weiss & Yourman has filed a class action lawsuit on behalf of purchasers of securities of the Walt Disney Company between August 15, 1997 and May 15, 2002. The complaint alleges that Disney and some of its officers and directors violated the Securities Exchange Act of 1934 by failing to disclose to the investing public the existence, details and potential effects of a pending lawsuit over merchandising rights concerning WINNIE THE POOH. If successful, the Pooh lawsuit could force Disney to pay hundreds of millions of dollars in royalty payments, or even possibly terminate the Company's merchandising agreement for Winnie the Pooh products, representing a loss of several billion dollars a year in revenue. Throughout the class period, defendants knew of, but failed to disclose in SEC filings and other public statements, the existence and/or extent of the Pooh litigation. On May 15, 2002, defendants finally revealed the amount of claims involved and the potential fallout of the Pooh litigation. According to Weiss & Yourman, since this disclosure, Disney stock price has fallen 28%. For more information about the class action suit, visit the firm's Website at www.wyca.com.