Blackwells Capital is reportedly suing Disney over an “inappropriately cozy” relationship with ValueAct Capital, another investor in The Walt Disney Company, according to Deadline.
- The lawsuit filed by Blackwells calls out concerns of ValueAct being paid to take a pro-Disney position in the ongoing proxy fight with activists like Nelson Peltz’s Trian Group.
- At Disney’s Annual Meeting of shareholders, which will be held on April 3, Peltz and Trian will seek to take over the seats of Disney board members Michael B.G. Froman and Maria Elena Lagomasino.
- Blackwells has also named three of its own candidates for Disney’s Board of Directors.
- The lawsuit seeks “books and records in order to determine whether wrongdoing, mismanagement, or breaches of fiduciary duty, including potential violations of disclosure obligations under the federal securities laws, have taken place.”
- The suit also claims that ValueAct managed Disney pension funds from 2013-23 and that Disney neglected to disclose this when proclaiming ValueAct’s support.
- A Disney spokesperson responded to the lawsuit, calling its claims “baseless” and “merely their desperate attempt to gain attention for their slate of director candidates.”
- The spokesperson went on to say:
- “No Disney pension plan funds are currently invested with ValueAct nor were they managing any Disney pension plan funds at the time of their entering into an information-sharing agreement with the company. Prior to Blackwells filing this litigation, Disney offered to meet with them and provide documentation confirming those facts, but Blackwells declined the meeting.”
- Shareholders have until 11:59 p.m. ET Tuesday to cast ballots for Disney’s Board of Directors and the results will be shared at the meeting on Wednesday.
- Disney’s Annual Meeting of shareholders will be conducted virtually and livestreamed on Disney’s investor relations website.