Disney in Hot Water Over Gender Discrimination Lawsuit
By Movieguide® Staff
A gender discrimination lawsuit against Disney, initiated by two frustrated employees, has the potential to become one of the most significant class action suits under California law.
According to Deadline, “Seeking at least $150 million in lost wages, the suit could balloon in damages up to and beyond $300 million. It means the action could prove the biggest ever certified under California law.”
The lawsuit was originally filed in 2019 by LaRonda Rasmussen, a Disney employee, who alleged “that ‘Disney systematically pays women in California less than men’ in various divisions of the company and claimed that the entertainment giant had violated two state labor laws aimed at preventing workplace sex discrimination,” the Wall Street Journal reported.
This legal battle marks another setback for Disney, which has faced a series of challenges in this case. Seven months ago, plaintiffs Rasmussen and Karen Moore succeeded in certifying their case as a class action suit against Disney.
With this certification, the lawsuit could potentially include up to 12,000 employees, significantly increasing the expected damages for Disney should they lose the case. The studio might be liable for up to $300 million.
Disney’s official statement on values emphasizes that “diversity and inclusion remind us all — from Disney fans to employees — that we belong.” However, this lawsuit casts a shadow over these claims.
Disney isn’t without some recourse. On Monday, a judge ruled in Disney’s favor regarding dozens of documents. The entertainment powerhouse has a month to justify why numerous documents requested by the plaintiffs’ legal team are unfit for the case due to their sensitive and confidential nature. This ruling could deliver a harsh blow to the plaintiffs’ case.
“We are pleased that the court denied the plaintiffs’ motion, just as it did the first time the plaintiffs attempted to make this groundless argument,” a Disney spokesperson told Deadline.
Movieguide® previously reported on another lawsuit leveled against Disney:
As Disney’s stock hovers at a 10-year low, investors hit the entertainment giant with a lawsuit, claiming the company misled Wall Street by concealing the cost of operating Disney+.
The lawsuit alleges that Disney executives hid the expense of Disney+ by debuting content on legacy platforms (like Disney Channel) to conceal the “staggering costs” of creating content. Furthermore, the suit claims that the company misled investors by artificially boosting its subscriber count on Disney+.
This lawsuit dates back to the Bob Chapek era of Disney and was largely fueled by his restructuring of the company, in which distribution and commercialization activities were centralized into the Disney Media and Entertainment Distribution (DMED) arm.
“With this new structure, Chapek removed budgetary and distribution control from the heads of Disney’s content groups (much to their dismay) and placed control in the hands of DMED’s new Chairman, defendant [Kareem] Daniel, who reported directly to his long-time mento Chapek,” the complaint explained, noting that the duo “exerted near complete control over the Company’s strategic decisions around content.”
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