Jimmy Kimmel by Obama White House Archived / Flickr
Several Walt Disney investors are demanding internal records to determine whether company leaders breached their fiduciary duties by allowing political pressure to drive last week’s suspension of Jimmy Kimmel’s late-night show.
Kimmel’s program was pulled off the air Sept. 17 after he made false remarks about the assassination of conservative activist Charlie Kirk, CatholicVote reported. ABC reinstated him six days later, though affiliates Nexstar and Sinclair continued to block the show from airing on their stations. But Sinclair announced Sept. 26 that it will begin airing the show again, FOX News reported.
In a Sept. 24 letter, first obtained by Semafor, to Disney CEO Bob Iger, lawyers for the American Federation of Teachers, AFL-CIO, and Reporters Without Borders requested board minutes, internal communications, affiliate agreements, and financial analyses tied to the decision to suspend Kimmel’s show.
“Due to the Trump administration’s continued threats to free speech, including with respect to ABC, we are writing to seek transparency into the initial decision to suspend Mr. Kimmel and his show,” the lawyers wrote.
The lawyers claimed that “The fallout from suspending Jimmy Kimmel Live! sparked criticism as an attack on free speech, triggered boycotts and union support for Mr. Kimmel, and caused Disney’s stock to plummet amid fears of brand damage and concerns that Disney was complicit in succumbing to the government overreach and media censorship.”
According to Axios, Disney shares fell about 3% during the suspension before the show returned Sept. 23.
The letter also says ABC did the “right thing” in bringing back the show, but the group is accusing Disney leaders of possible mismanagement and fiduciary breaches by placing political considerations above shareholder interests.
“There is a credible basis to suspect that the board and executives may have breached their fiduciary duties of loyalty, care, and good faith by placing improper political or affiliate considerations above” the company’s best interests, the letter said.
They argued the decision “appeared to be in response to threats” from Federal Communications Commission Chairman Brendan Carr — who suggested regulators might act against Kimmel and the company — as well as pressure from ABC affiliates Nexstar Media Group and Sinclair.
The investors threatened legal action if Disney does not provide the requested records by Oct. 1.
