Disney is suing Gov. Ron DeSantis and accusing him of trying to 'weaponize government power' over the company

• Disney is suing Gov. Ron DeSantis of Florida.
• The company alleges DeSantis tried to "weaponize government power" over the company.

Walt Disney World sued Gov. Ron DeSantis of Florida on Wednesday, alleging that he tried to "weaponize government power" over the company.

The suit, filed by Walt Disney Parks and Resorts US Inc., alleges that DeSantis and his office have engaged in "a targeted campaign of government retaliation" against Disney that was "orchestrated at every step by Governor DeSantis as punishment for Disney's protected speech."

The suit says DeSantis' continued action against Disney "threatens Disney's business operations, jeopardizes its economic future in the region, and violates its constitutional rights."

The tug-of-war between Disney and DeSantis has been at the center of the governor's economic and policy messaging at a time when he's widely expected to mount a run for president.

It has also stunned the business world given Disney's formidable power in the state. Walt Disney Co., the parent company of Walt Disney Parks and Resort, is headquartered in Burbank, California, but the company holds powerful sway in Florida through Walt Disney World, which has roughly 80,000 employees and is the state's biggest tourist attraction.

The latest move by the company, currently facing a wave of layoffs, is an escalation after DeSantis threatened changes to Disney's special tax district, with help from both the Florida Legislature and the board he appointed to oversee the district. He even floated the idea of building a state prison on the 40 square miles of land that borders the resort and theme park.

Last week, DeSantis' newly appointed board said "nothing is off the table" as it took on a major overhaul of the area. In the mix were higher taxes, more regulations, building workforce affordable housing, and exploring the sale of utilities the district owns.

The DeSantis-Disney feud started when the company's executives publicly pledged to work to repeal a DeSantis-backed school-curriculum bill that Democrats have termed the "Don't Say Gay" bill.

The law initially at the center of the dispute, formally known as the Parental Rights in Education Act, banned classroom instruction about gender identity and sexual orientation for up to third grade. Last week, the DeSantis administration expanded it to 12th grade, limiting discussions to sex-education classes or those "required by existing state standards."

As retaliation to the Disney executives' pledges, DeSantis took aim at a decadeslong provision that gives Disney special self-governing privileges in Florida. Unlike its rival parks Universal Studios and SeaWorld, Disney doesn't have to run its plans by zoning commissions or building-inspection departments. This is intended to make its operations run more efficiently, which saves it time and money.

To subvert DeSantis, Disney stealthily made a deal with the previous board that controlled the district, one that would allow the theme park and resort to maintain control of its land virtually in perpetuity.

DeSantis was working outside the country at the time of the lawsuit

Disney filed its lawsuit as DeSantis was out of the US on an international business trip that included a stop in Japan.

The case has been assigned to Judge Mark Walker, an appointee of President Barack Obama who previously blocked a DeSantis-backed law that restricted how workplaces instituted diversity, equity, and inclusion trainings.

"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," Taryn Fenske, DeSantis' communications director, said when asked about the lawsuit. "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 worked with the legislature twice before to punish Disney and ran on the issue during his successful 2022 reelection bid.

First, DeSantis signed a bill into law in April 2022 to dissolve the Reedy Creek Improvement District that oversees Disney. But when it was revealed the measure could have resulted in residents taking on a sizeable amount of debt through higher taxes, the legislature sent DeSantis a new bill in February 2023, during a special session, that would allow the governor to appoint a board to control the district.

After the loophole, he worked with the legislature to double down, including measures being considered to impose new inspections on Disney's monorail system and rides.

The company remained quiet for a while, though it announced an affordable housing initiative was moving ahead and publicized its celebration of an LGBTQ+ event at Disneyland in California. But Wednesday they picked a high-powered attorney to represent them in the lawsuit: Daniel Petrocelli, whose clients have included OJ Simpson and Harvey Weinstein, who successfully argued for the AT&T and Time Warner merger.

"When Disney didn't respond for a while, I was shocked, as I think a lot of close observers were," Richard Foglesong, the author of the book "Married to the Mouse: Walt Disney World and Orlando," told Insider. "They have a lot to lose on this that is maybe not fully appreciated."

Foglesong said he'd be closly watching comments from Disney CEO Bob Iger in the coming days to assess whether the company was "willing to take a hard run at DeSantis."

Wednesday's lawsuit came shortly after another public meeting with the governor-appointed board that oversees Disney, and names the board in the suit. In that meeting, an attorney for the board argued that Disney had improperly struck its 11th-hour deal to maintain control over its land.

"What our lawyers have told us is that this is — factually and legally — an absolute legal mess," Martin Garcia, the chair of the Central Florida Tourism Oversight District, said. "It will not work."

Asked by the Florida Sun-Sentinel about the lawsuit after the meeting, Garcia said he had no comment. The lawsuit landed shortly after the board declared Disney's power grab null and void.

Senate President Kathleen Passidomo, a Republican from Naples, declined during a meeting with reporters to comment on the lawsuit, saying she hadn't read it yet. She brushed off suggestions that the GOP-supermajority legislature and DeSantis acted in "retaliation" against Disney.

"Is that good policy at the last minute to make changes? Frankly, I don't believe that's good policy," she said.

Foglesong, who is reading DeSantis' new book "The Courage to Be Free," which has a chapter about the Disney feud, said he couldn't picture the govenror backing down.

"He doesnt seem like someone who likes to kiss and make up and that's his brand," he said. "He's a tough guy; that's his chosen image and he doesn't want to look weak."