Disney sues Ron DeSantis, alleging he "targeted" the company for political reasons
The Walt Disney Co. sued Florida Governor Ron DeSantis on Wednesday, alleging that the governor has overseen a "targeted campaign of government retaliation" that is threatening the entertainment and media giant's operations.
The action by DeSantis "jeopardizes its economic future in the region, and violates its constitutional rights," according to the lawsuit, which was filed Wednesday in the U.S. District Court for the Northern District of Florida.
In Israel on Thursday, DeSantis said the lawsuit doesn't have merit and said the company is "upset because they're actually having to live by the same rules as everybody else."
"I think they filed in Tallahassee for a reason because they're trying to generate some district court decision, but we're very confident on the law," he said.
The lawsuit comes after a year-long battle between DeSantis and the entertainment company, sparked when Disney publicly opposed his "Parental Rights in Education" bill, which prohibits instruction on sexual orientation and gender identity in schools. After Disney spoke out against the law, DeSantis sought to gain control of the Reedy Creek Improvement District (RCID), a government entity that oversees the region where the Walt Disney World resort is based.
That entity became the center of a bitter fight between DeSantis and Disney, with twists worthy of one of the company's movies. DeSantis effectively gained control of the RCID, which he then reconstituted as the Central Florida Tourism Oversight District. The governor appointed five people to replace the elected members of the RCID, and mused that he might impose taxes on Disney's hotels or even place a prison next to Walt Disney World.
But Disney made an end run around that maneuver, stripping the RCID's board of much of its power, a decision that the new chair of the revamped board called "shameful." Earlier this month, DeSantis unveiled a new legislative push targeting Disney that would void a last-ditch agreement the company made to strip power from his state-appointed board.
On Wednesday, the Central Florida Tourism Oversight District voided Disney's development contracts, a move that the company said is "patently retaliatory, patently anti-business, and patently unconstitutional," according to the lawsuit.
Just minutes later, Disney filed its lawsuit.
"There is no room for disagreement about what happened here: Disney expressed its opinion on state legislation and was then punished by the state for doing so," the complaint alleges.
A spokesperson for DeSantis said he is "unaware of any legal right that a company has to operate its own government or maintain special privileges not held by other businesses in the state."
"This lawsuit is yet another unfortunate example of their hope to undermine the will of the Florida voters and operate outside the bounds of the law," the spokesperson added.
$1.1 billion in taxes
Disney underlined its importance to Florida in its lawsuit, noting that it provides the state with $1.1 billion in state and local taxes last year and is one of its biggest employers, with 75,000 employees there.
The lawsuit also names the five new board members of the Central Florida Tourism Oversight District, plus its administrator, as well as the state's acting secretary of the Florida Department of Economic Opportunity.
"Disney regrets that it has come to this," the suit states. "But having exhausted efforts to seek a resolution, the company is left with no choice but to file this lawsuit to protect its cast members, guests and local development partners from a relentless campaign to weaponize government power against Disney in retaliation for expressing a political viewpoint unpopular with certain state officials."
The company asks the court to find that the Central Florida Tourism Oversight District's voiding of its development contracts to be "unlawful and unenforceable" because it allegedly violates Disney's property rights, right to due process and First Amendment rights.
Disney "knows that it is fortunate to have the resources to take a stand against the state's retaliation — a stand smaller businesses and individuals might not be able to take when the state comes after them for expressing their own views," the lawsuit claims.
It added, "In America, the government cannot punish you for speaking your mind."
Aaron Navarro contributed to this report.