Disney and Fox Sued by Malaysian Casino Resort Company Genting for $1bil
Genting Seeks Punitive Damages Over Abandoned Contract
Walt Disney and Twenty-First Century Fox were sued for an alleged more than $1 billion on Monday by Malaysian casino resort operator, Genting Malaysia Bhd. Genting Malaysia accused them of pulling out and abandoning a contract sponsored for its planned Fox-branded theme park.
Fox and Disney had been influenced by “seller’s remorse” in order to breach its 2013 contract with Fox Entertainment Group, according to Genting. The breach came after Fox wanted to license an intellectual property for Fox World, which will be a projected addition to its Resorts World Genting Complex.
Genting said the problems started when Fox played around with years of delays in wanting a renegotiation of the contract. A contract that did not give its share of gate sales to Genting.
Fox, on the other hand, issued a default notice with the hope of ending the contract where it is hoping to be completely consistent with Disney in wanting to end the deal to its own advantage, according to Genting.
“Given that FEG had no right to terminate the Agreement, Fox and Disney are liable for what will exceed a billion dollars in damages attributable to the bad-faith behaviour of both Fox and Disney,” the complaint from the Malaysian company said.
Fox has told Bloomberg News in an email response that the Malaysian company failed to meet agreed-upon deadlines. Fox has further said in the email that the allegations that Disney forced a termination were “simply made up”. Disney has chipped in saying the claims against them were “without merit”.
Genting further said they have already made “$750million-plus investment” in Fox World. They are currently seeking punitive damages from this matter.
Thus far, Disney is currently making all the decisions and wants to end the contract. According to Disney, the reason for their contract termination is due to how associating with a gaming company does not fit its “family friendly” branding strategy.
“That’s unlike Fox, which was perfectly happy to have the park situated a stone’s throw from the casinos of Resorts World Genting so long as it could continue to extract financial concessions,” the Malaysian company said.
The lawsuit was filed in Los Angeles as Disney prepares to complete its $71.3bil purchase of many Fox assets in early 2019.
Resorts World Genting is the only company in Malaysia to own and legally run a land-based casino, seven hotels, shopping malls, performance venues, gondola lifts and an endless list of restaurants, bars, and clubs. It is said that more than 23 million people visit every year.