Disney and Fox Respond to Lawsuit Regarding Abandoned Malaysian Theme Park

Disney and Fox Respond to Lawsuit Regarding Abandoned Malaysian Theme Park

On Monday, November 26, 2018, news spread like wildfire about Disney and Fox being sued by Genting Malaysia Berhad for wrongfully abandoning a previously contracted 21st Century Fox films theme park.

Genting claims Disney ultimately pulled the plug on the theme park after the Disney/Fox deal was struck despite a contract that was filled between Fox and the Malaysian based company, back in 2013. They also claim Disney did this intentionally to keep the creation of a competitive theme park from entering the fold and disrupting business for the Disney Parks. Genting says that Disney/Fox owe them $1.75 billion dollars in retribution for the theme park that had already started construction in a portion on the outskirts of Kuala Lumpur in Malaysia. Along with the accusations and search for retributions GMB [Genting Malaysia Berhad] also believes this is a breach of contract and will present this along with other “proof” that Fox wrongfully terminated the deal by requiring drastic and “impossible” deadlines to have various tasks completed for opening the would-be theme park and backed out when those deadlines were not met.

In the lawsuit the GMB clearly stated their reasoning for the suit:“On information and belief, Fox’s soon-to-be owner Disney was now calling the shots, and its objective was no longer renegotiation of the MOA (Memorandum of Agreement), but termination. Permitting the ‘Fox’ brand to attach to a theme park over which FOX would have no control for what could amount to decades would have created business complications that Disney and 21st Century Fox preferred to avoid… Thus, on information and belief, Disney and 21st Century Fox, with knowledge of the Agreement, improperly directed FEG to terminate the Agreement.”

Genting Malaysia Berhad claims the are sitting on $180 million dollars in losses.

Disney and Fox are set to close this $71.3 billion dollar merger early into the new year.

The following day, November 17, 2018, Disney and Fox responded.

Disney released this statement, “The claims made against Disney in this matter are utterly without merit.”

“This lawsuit is entirely without merit. As the Complaint itself makes clear, Genting has been failing to meet the agreed-on deadlines for several years, long before the 21CF-Disney agreement. The allegation that Disney, rather than Fox, finally decided to declare a default is simply made up. We look forward to presenting all the facts in the appropriate forum.” stated a spokesperson for 21st Century Fox.

Obviously the entertainment companies will have more to say in court, but it seems they are confident that the proceedings will end in their favor. A court date has yet to be set, be sure to check back here at Chip and Co. for updates on this situation.

Photo Credit: Disney

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Kaitlyn is a writer, painter, and artist based just north of Baltimore, Maryland. She is a previous participant in the Disney College Program and has years of experience with Walt Disney World Parks and Resorts and with Universal Orlando Resort. Her and her big 'Ohana are frequent visitors to the parks and resorts and she is always up for another trip to visit her favorite castles! Kaitlyn is the News & Entertainment Writer for Chip and Company and is passionate about writing and storytelling.
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