A battle between a leading media company and the governor of Florida took a new turn Wednesday with Ron DeSantis scoring a victory.
What Happened: Media giant The Walt Disney Company DIS has been battling with DeSantis over the region of Florida known as Reedy Creek that houses its Disney World theme park.
On Wednesday, federal Judge Allen Winsor dismissed a First Amendment challenge from Disney against DeSantis, which comes as the governor has replaced the board and renamed the district that oversees the region around Disney World.
Winsor, who was appointed to his position by former President Donald Trump, said Disney does not have standing to sue DeSantis, the secretary of Florida's Department of Commerce or members of the newly named Central Florida Tourism Oversight District (CFTOD) board.
"Disney's claims against the Governor and the Secretary will be dismissed for lack of jurisdiction,” Winsor said.
Winsor said Disney failed to show it was retaliated against by the governor or the newly appointed CFTOD Board. The case was dismissed on "the merits for failure to state a claim."
Related Link: Disney Q4 Earnings Highlights: Revenue Miss, Earnings Beat, Disney+ Adds 7 Million Core Subscribers And More
Why It's Important: Disney has faced an ongoing battle with DeSantis that comes after previous CEO Bob Chapek publicly criticized Florida’s Parental Rights in Education Act, also known as the "Don't Say Gay" law.
After the ruling Wednesday, Disney appears ready to challenge and continue fighting.
"This is an important case with serious implications for the rule of law, and it will not end here," the company said, as reported by Politico.
"If left unchallenged, this would set a dangerous precedent and give license to states to weaponize their official powers to punish the expression of political viewpoints they disagree with. We are determined to press forward with our case."
A spokesperson for DeSantis said the ruling shows the governor has been right.
"The days of Disney controlling its own government and being placed above the law are long gone. Disney is still just one of many corporations in the state, and they do not have a right to their own special government," DeSantis spokesperson Jeremy Redfern said, according to Politico.
The media company and CFTOD remain in a legal battle over land use agreements. That case is ongoing in state courts in Florida. Disney has asked the court to void the creation of the tourism district.
DeSantis dropped out of the 2024 presidential race . He won re-election as Florida governor’s in the 2022 election and the term runs until January 2027.
DIS Price Action: Disney shares were down 1% to $96.05 on Wednesday versus a 52-week trading range of $78.73 to $118.18.
Photo via Shutterstock.
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