According to the docket posted on this site, the court issued a Stipulation and Order dated November 05, 2003. The parties agreed to dismiss this matter with prejudice, with each side to bear its own costs and fees. The case is closed.
On September 12, 2003, the court issued an Order granting Defendants' motion to dismiss Consolidated Amended Class Action Complaint and giving the Plaintiffs until October 08, 2003 to file a second amended complaint.
The complaint asserts claims for violation of Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 promulgated thereunder against the Walt Disney Company and certain senior executives, and asserts claims for violation of Section 20(a) against certain management executives.
Specifically, the complaint alleges that Disney failed to disclose a lawsuit (hereinafter referred to as the 'Pooh Litigation') involving hundreds of millions of dollars in potential royalty payments and the potential loss of $2 - $6 billion in future licensing revenue relating to a beloved character in a well-known children's book, Winnie the Pooh (or 'Pooh'). At risk is the Company's merchandising agreement for Pooh character products which could be terminated as early as February 2003. Throughout the Class Period, Disney's SEC filings omitted all disclosure of the Pooh Litigation. On May 15, 2002, defendants finally revealed the number of claims involved and the possible results of the Pooh litigation. Disney's stock price fell on this news, decreasing 28% in the following two months.