On Wednesday, a coalition of Disney shareholders, including prominent organizations like the American Federation of Teachers (AFT), the AFL-CIO labor federation, and Reporters Without Borders, formally demanded internal records from the company regarding its decision to suspend Jimmy Kimmel Live!
The request, outlined in a letter to Disney's board, accuses executives of potentially breaching their fiduciary duties by prioritizing political pressures over the company's and shareholders' interests. This development comes just one day after Kimmel's highly rated return episode on September 23, which drew 6.26 million viewers despite ongoing affiliate boycotts.
The letter, drafted by lawyers including Roberta Kaplan (known for representing E. Jean Carroll in her lawsuit against Trump), invokes Delaware corporate law, where Disney is incorporated. Shareholders in Delaware can demand "books and records" to probe potential board-level misconduct, potentially paving the way for lawsuits.
Key allegations include:
- Breach of Fiduciary Duties: The groups claim executives may have violated duties of loyalty, care, and good faith by yielding to "improper political or affiliate considerations" amid FCC threats, rather than safeguarding the company's free speech commitments and long-term value.
- Scope of Request: Focused on board records and deliberations (e.g., involving Iger and Walden), excluding routine executive communications with Kimmel or affiliates.
- Timeline and Threat: Disney has five business days to comply; failure could trigger a lawsuit to enforce access.The shareholders expressed relief at Kimmel's reinstatement but emphasized ongoing "Trump administration threats to free speech," including against ABC, as justification for scrutiny.
No immediate response from Disney, AFT, AFL-CIO, or Reporters Without Borders was available as of Wednesday.