Judge allows investor lawsuit against Disney over streaming losses and profitability claims

A federal judge has allowed a lawsuit from investors against Disney to proceed. The investors claim former CEO Bob Chapek misled them about the company's streaming losses and profitability forecasts for Disney+. The lawsuit alleges that Chapek and other executives engaged in deceptive practices to inflate subscriber growth while hiding costs. This included reorganizing Disney's media operations and shifting content to streaming to boost subscriber numbers. Disney's stock dropped significantly during the period in question, and the lawsuit seeks to represent investors who bought shares from December 2020 to May 2023. Claims of insider trading by several executives are also part of the case.