Advertisement

Two former directors sue Disney Co.

BURBANK, Calif., May 9 (UPI) -- Two former members of The Walt Disney Co.'s board of directors filed a lawsuit Monday accusing the company of making false statements to shareholders.

Roy Disney and Stanley Gold announced on their Web site SaveDisney.com, they filed the suit in Delaware Chancery Court against Disney and "certain members of the Board of Directors."

Advertisement

The suit alleges the board made false statements to shareholders about its search for a successor to CEO Michael Eisner, to get shareholders to vote to retain board members at the 2005 shareholders meeting.

In addition to The Walt Disney Co. and Eisner, the suit names Robert Iger and six other board members as defendants. The suit accuses the defendants of fraud and breach of the duty of disclosure.

The suit asks the court to void the election of Disney directors and to compel the company to hold another election.

Roy Disney and Gold allege that, although the board told shareholders it would conduct the CEO search with no predeterminations, the board had already decided against "serious and effective consideration of external candidates."

Advertisement

The board voted earlier this year to hire Iger to run Disney after Eisner's retirement as CEO.

Latest Headlines