Disney files lawsuit against Ron DeSantis, alleging 'targeted campaign of government retaliation'

Disney (DIS) filed a lawsuit on Wednesday against Florida Governor Ron DeSantis and his hand-selected Central Florida Tourism Oversight District board.

In a four-count civil lawsuit filed in the US District Court for the Northern District of Florida, Disney asked the federal court to intervene and order DeSantis to stop punishing the company for what it says is constitutionally protected free speech.

The news comes shortly after the board passed a resolution to nullify Disney's last minute agreements that allowed it to retain control of its long-standing special tax district, formerly known as Reedy Creek.

"This government action was patently retaliatory, patently anti-business, and patently unconstitutional," Disney said in the complaint, obtained by Yahoo Finance. "The Governor and his allies have made clear they do not care and will not stop."

Disney is asking the district court to step in and order that its contracts remain effect and declare that DeSantis’ actions are constitutionally unlawful and unenforceable.

Disney is also requesting that the court’s order block DeSantis from enforcing Senate Bill 4C and House Bill 9B, which would dissolve all special tax districts established prior to November 1968, including Reedy Creek, and authorize a reestablishment period to either amend them, or keep them dissolved.

Wednesday's filing is the latest bombshell move in a tit-for-tat that has captured the attention of lawmakers on both sides of the political aisle as DeSantis attempts to thwart Disney's plans.

"They are not superior to the laws that are enacted by the people of the state of Florida," DeSantis said at a press conference last week. "That’s not going to work, that’s not going to fly."

In a statement sent to Yahoo Finance in response to the lawsuit, DeSantis' Communications Director, Taryn Fenske said, "We are 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."

DeSantis, who announced new legislation that would require Disney to adhere to further inspections of its theme parks, added he's open to developing land near Disney as a way to exercise further control, floating possibilities like a state park or even a state prison. He also suggested the board should consider raising taxes on the company.

Disney's lawsuit categorized DeSantis' fight as a "targeted campaign of government retaliation —orchestrated at every step by Governor DeSantis as punishment for Disney’s protected speech — [that] now threatens Disney’s business operations, jeopardizes its economic future in the region, and violates its constitutional rights."

According to Disney, DeSantis is responsible for a series of retaliatory actions against the company, including illegally pressuring Florida’s oversight board to void Disney’s lucrative development contracts.

In thwarting two multi-billion dollar contracts, which would expand its theme park’s footprint, Disney says, DeSantis violated constitutional protections that safeguard contracts and prohibit government property seizures.

"Disney regrets that it has come to this," the complaint continued. "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 fight stems from what has largely been seen as a politically-targeted response over Disney's reaction to the so-called "Don't Say Gay" law, which forbids instruction on sexual orientation and gender identity from kindergarten through third grade.

In 2022, then-Disney CEO Bob Chapek condemned this law at the company's annual shareholder meeting after initially deciding not to speak publicly on the matter.

That decision set off a political firestorm which continues today, with current Disney CEO Bob Iger defending the company's actions and denouncing DeSantis' practices during its annual meeting of shareholders held earlier this month.

"A company has a right to freedom of speech just like individuals do," Iger said at the time, describing DeSantis' policies as "anti-business" and "anti-Florida."

"Disney finds itself in this regrettable position because it expressed a viewpoint the Governor and his allies did not like," Wednesday's complaint reads.

"Disney wishes that things could have been resolved a different way. But Disney also 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. In America, the government cannot punish you for speaking your mind."

Alexandra is a Senior Reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at [email protected]

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