Disney Is SuedOver CEO Search
By MERISSA MARR Staff Reporter of THE WALL STREET JOURNALMay 9, 2005 5:15 p.m.
Dissident ex-directors Roy E. Disney and Stanley Gold filed suit against Walt Disney Co. and certain board members, alleging the board made false statements to shareholders about the company's search for a new chief executive.
The lawsuit revolves around the search process used by the Disney board before its recent decision to name Robert Iger to replace longtime chief Michael Eisner. The dissidents claim that the board misled shareholders in order to make them vote for the incumbent board and ward off critics.
In their lawsuit, filed in the Delaware Chancery Court, Messrs. Disney and Gold asked the court to void the 2005 election of directors.
In addition to Disney, the two former directors are suing Mr. Iger, Mr. Eisner, Chairman George Mitchell and five other board members -- Judith Estrin, John Chen, Aylwin Lewis, Monica Lozano and Leo O'Donovan -- for fraud and breach of the duty of disclosure.
The appointment of Mr. Iger as the new CEO was intended to extend Disney's recent financial revival with a leader who is well-versed in its inner workings and unique culture. Mr. Iger, who rose up through the ranks of Disney's network-television business, is scheduled to take over as chief executive on Sept. 30.
When Mr. Iger was announced as the new CEO, Mr. Disney and Mr. Gold quickly assailed Mr. Iger's selection, saying it was the result of a "sham" process overseen, and tightly controlled, by Mr. Mitchell.
Write to Merissa Marr at merissa.marr@wsj.com6
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Of note for GU purposes is that George Mitchell is a law grad (class of '61, I believe). And Michael Eisner is the parent of a GU grad -- who just directed Sahara -- and a former BoD member.
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