Class Action Lawsuit vs. Disney

[Sarangel]

From Yahoo.com news:

During the Class Period, defendants failed to disclose the existence, details, and potential effects of a pending lawsuit over merchandising rights concerning "Winnie the Pooh.'' Those effects include the potential payout by Disney of hundreds of millions of dollars in royalty payments in as well as the much more serious threat of possibly terminating the Company's merchandising agreement for Winnie the Pooh products which represents several billion dollars a year in revenue. Throughout most of the class period, Disney's SEC filings avoided all disclosure of the Pooh litigation. On May 15, 2002, defendants finally came clean about the amount of claims involved and the potential fallout of the Pooh litigation. As various media sources gradually reported this news, Disney stock price fell, declining 28% in the two months after the disclosure.

This lawsuit represents those who bought Disney stock between 8/15/97 and 5/15/02. Since I'm in that category, I can tell you that they haven't sent out any paperwork to those who bought the stock yet, as is usual in class action suits.

Sarangel