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Adding to Disney’s woes are ongoing lawsuits that threaten its reputation and finances. Disney is entangled in a particularly high-profile legal dispute with the state of Florida. Although details are still emerging, reports suggest that the battle is intensifying with each passing day, with Disney’s stance appearing to weaken.
More concerning for investors and industry insiders is a recent lawsuit filed by film financier TSG. The lawsuit alleges that Disney engaged in “Hollywood accounting” practices — a term used to describe creative financial manipulations designed to minimize profits and evade financial obligations to stakeholders.