BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased 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.
Investors suffering losses on their Disney investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
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.
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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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