Disney Faces Lawsuit Over Cancelled Project That Forced Employee Relocations
Disney is embroiled in a lawsuit as employees allege they were misled into relocating for a project in Florida that was later cancelled, causing financial and personal upheaval.
In a significant legal challenge for Disney, current and former employees are pursuing a class action lawsuit against the entertainment giant. They claim Disney misrepresented its intentions when it announced plans in 2021 for a new $1 billion campus in Florida, intended for theme park staff. This announcement prompted approximately 2,000 employees based in California to either relocate or face potential resignation.
However, less than two years later, Disney abruptly reversed its decision, citing strategic shifts under the leadership of returning CEO Bob Iger, who initiated a cost-cutting agenda upon his return. The project's cancellation coincided with a period of heightened tension between Disney and Florida governor Ron DeSantis.
According to the lawsuit filed in Los Angeles County Superior Court, employees were compelled to uproot their lives based on Disney's assurances, incurring substantial moving expenses including selling and purchasing homes. "These folks are really frustrated by their circumstances," remarked Jason Lohr, the attorney representing the employees.
Among the plaintiffs are Maria de la Cruz, a vice president of product design, and George Fong, creative director of product design, both of whom are current Disney employees. They allege that Disney's actions have caused severe financial and personal damages.
George Fong, for instance, sold his childhood home in anticipation of the move to Florida, only to return to California to a smaller residence after the project's cancellation. The lawsuit contends that Disney failed to adequately compensate employees for these damages despite their reliance on the company's promises for job security.
The complaint also highlights the broader economic impact of Disney's initial plans, which reportedly drove up local home prices—a factor that compounded the financial losses suffered by employees when the project was scrapped.
Disney has declined to comment on the ongoing litigation. The lawsuit underscores growing concerns among American workers about job relocations, especially amidst volatile housing markets and economic uncertainties.
Since its filing, the lawsuit has garnered significant interest from other affected employees, signaling potential further legal challenges for Disney in the coming months.
This lawsuit against Disney illustrates the complexities and risks involved when corporations announce major operational shifts, affecting not just their business strategies but also the lives and livelihoods of their employees.
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