Disney (DIS) and the state of Florida reached a settlement Wednesday to end a long-running lawsuit over the company's special tax district.
The district, formerly known as the Reedy Creek Improvement District (RCID), was allowed by Disney to operate as a self-governing entity from its inception. But Florida Gov. Ron DeSantis took control of the district last year following Disney's opposition to the state's “Don't Say Gay” law. The law prohibits teaching children from kindergarten through third grade about sexual orientation and gender identity.
“We are pleased to be able to conclude all litigation pending in Florida state court between Disney and the Central Florida Tourism Oversight District,” Walt Disney World President Jeff Wahr said in a statement.
“This agreement opens a new chapter of constructive engagement with the district’s new leadership, and will lead to significant continued investment and the creation of thousands of direct and indirect jobs and economic opportunities in the state. “It is in the interests of all parties to enable this,” he added.
The high-profile showdown in Florida marks a long-standing push for Disney to avoid a proxy fight and grapple with challenges including a decline in its linear TV business, slowing growth in its parks business and losses in its streaming division. .
According to the proposed settlement, the parties “express a mutual desire to resolve all disputes” related to the litigation, which is currently pending in Florida state court.
The settlement also includes language suggesting that Disney may drop its federal lawsuit against Governor DeSantis “pending negotiations on other matters related to the new development agreement between Disney and the District.” Ta.
Disney last month had a free speech lawsuit against the governor dismissed by a federal judge, ruling that the company ultimately had “no standing,” meaning it didn't have the right to sue DeSantis and another government official. A notice of appeal was filed.
Disney filed a federal lawsuit last April accusing DeSantis and the CFTOD board of launching a “targeted government retaliation campaign” to punish Disney for its position on “Don't Say Gay.”
Read more here and check out the timeline of Yahoo Finance's story below.
