Disney Settles Lawsuit

[Sarangel]

OK, it was a minor one, but that's one less for the lawyers to play with:

The Walt Disney Company has settled a 20 (m) million dollar "whistle-blower" lawsuit brought by a former executive.

In her March 2001 suit, Judy Denenholz said she was fired for refusing to help the company allegedly cheat the I-R-S.

In response to the suit, Disney said it had investigated the allegations leveled by Denenholz and found them to be "shameful and untrue."

The case was scheduled to go to trial next Monday, but the Los Angeles Times reports that it was settled late last week. The terms weren't disclosed.

Denenholz, who was senior vice president of the company's worldwide anti-piracy division, claimed that Disney had substantially understated what it owed the government.

The saddest part is that I find myself more inclined to believe Ms. Denenholz than the Disney Company...

Sarangel

 

[vernon]

I've never understood some of the wording of "announcements " like this. Maybe someone can explain. If the terms are "undisclosed" what is the relevence of stating "a $20 million lawsuit" . The implication is Disney paid up the 20 mill, but I think the reality is likely to be much less. It could have been settled at zip and Disney accept to pay their own legal costs, who knows?

I think all big companies tread a tight line on avoiding paying tax that they legally don't have to. Inevitably there are occassions when companies tread over the line of what is avoidance and what is evasion. In the UK the difference is potentially about 4 years in jail LOL.