In Re Disney Shareholder Litigation

Summary

This Disney shareholder litigation involved a directors and officers liability claim asserted by Disney shareholders based on a $140M severance payment to former Disney President Michael Ovitz.

Witnesses testifying in the trial included Disney CEO Michael Eisner, as well as Roy E. Disney, Senator George Mitchell, actor Sidney Poitier, Sanford "Sandy" Litvack, Gary Wilson, Father Leo O'Donovan, Graef "Bud" Crystal, Richard Nunis, Stephen Bollenbach, Irwin Russell, Stanley Gold, Reveta Bowers, and Michael Ovitz, all of whom were Disney senior executives, board members, or advisors at the time of the severance payment.

The Court approved the severance.

Outcome

The court found that the director defendants had not breached their fiduciary duties or committed waste. Therefore judgment was in favor of the defendants as to all claims, the executive compensation and severance package.