Walt Disney Co.’s lawsuit against Florida’s Republican Gov. Ron DeSantis and others, alleging they retaliated against the company for publicly criticizing a controversial parents-rights education law backed by DeSantis, was dismissed by a federal judge on Wednesday.
Shares of Disney
DIS,
fell about 1% Monday.
Judge Allen Winsor ruled Disney lacked legal standing to sue DeSantis. He added that Disney’s charges “fail on the merits” against members of the Florida board of a special improvement district in which the company operates its parks and resort.
In his ruling, Winsor said Disney “has not alleged any specific actions the new board took (or will take) because of the governor’s alleged control.” He added the company “has not alleged any specific injury from any board action.”
“Its alleged injury … is its operating under a board it cannot control. That injury would exist whether or not the governor controlled the board,” he wrote.
Disney strongly suggested it will appeal Winsor’s ruling.
“This is an important case with serious implications for the rule of law, and it will not end here,” the company said in a statement. “If left unchallenged, this would set a dangerous precedent and give license to states to weaponize their official powers to punish the expression of political viewpoints they disagree with. We are determined to press forward with our case.”
The controversial legislation, dubbed “Don’t Say Gay” by critics, was passed in 2022.