WILMINGTON, Del., June 7 (UPI) -- A Delaware court rejected a request by the Walt Disney Co. to dismiss a lawsuit filed by ex-directors who say the studio lied about how it picks directors.
As a result of the ruling, Roy E. Disney and Stanley Gold may proceed as early as August with their suit against the company, the Hollywood Reporter said Tuesday.
The two want to void a recent shareholder election of current board members and force the company to disclose how it went about selecting Robert Iger to replace Chief Executive Michael Eisner when he retires this year.
The lawsuit, filed in early May, charges the board made false statements to shareholders about its chief executive search to secure votes for the incumbent board at the company's annual meeting.
The lawsuit also says Disney's board took action to prevent the plaintiffs from offering an alternate slate of directors at the meeting.
