×
You will be redirected back to your article in seconds

Disney Shares Slip Amid Reported Whistleblower Allegations of Inflated Revenue

Sandra Kuba, a former senior financial analyst for Disney’s revenue operations unit, says she has filed a series of whistleblower tips with the U.S. Securities and Exchange Commission, alleging that the entertainment conglomerate repeatedly and systematically overstated its revenue for years, according to a MarketWatch report, by as much as $6 billion in a single year. But Disney has pushed back on the claim.

A Walt Disney spokesperson said that “This former employee, who was fired for cause, has persistently made patently false claims for over two years. The claims she made to the company were thoroughly investigated and found to be utterly baseless. It is unfortunate that MarketWatch, which has been aware of the facts for months, knowingly and deliberately chose to give Ms. Kuba’s unfounded claims a platform.”

The Dow Jones-owned business news outlet, which reviewed the filings, said the allegations involved the parks and resort segment, and included fictitious revenue records for complimentary golf rounds or free guest promotions, for example. In another instance, Kuba accused theme park employees of sometimes recording gift card revenue twice or recording gift card revenue at face value even if park guests paid a discounted price.

Kuba said she first made the complaints to the SEC in August 2017 and was reportedly fired from her position at Disney a month later, after working at the company for 18 years. She also filed a whistleblower-retaliation complaint with the Labor Department’s Occupational Safety and Health Administration, said MarketWatch.

Shares of Disney began paring gains for the day after the report was published, slightly after 3 p.m. Eastern. The stock ended up slightly Monday, less than 0.1%, but has since slid into negative territory in after-hours trading, down as much as 0.4%. The broader market finished the trading session in the green, with the S&P 500 up 1.2%, the NASDAQ up 1.4% and the Dow Jones Industrial Average up nearly 1%.

The SEC declined to comment.

MarketWatch also noted that Kuba had withdrawn her claim challenging her termination from her job.

More TV

  • Brockmire IFC Hank Azaria

    'Brockmire' to End With Season 4 on IFC

    IFC has announced that the fourth season of “Brockmire,” premiering March 2020, will be the Hank Azaria comedy’s last. As well as Azaria, the show’s stars Amanda Peet, Tyrel Jackson Williams and Katie Finneran are all returning for the final eight-episode send off.  Additionally, “The Flash” star Reina Hardesty is joining the cast. “I really [...]

  • Tamron HallRolling Stone's Women Shaping The

    Tamron Hall Talk Show Renewed for Second Season

    Tamron Hall is staying put in daytime syndication now that Walt Disney Television has renewed her eponymous talk show for a second season. “Tamron Hall” has been re-upped for a second season on stations covering 80% of U.S. TV households, including the eight ABC O&O stations covering New York, Los Angeles, Chicago and other big [...]

  • The Marvelous Mrs. Maisel

    'Marvelous Mrs. Maisel' Renewed for Season 4 at Amazon

    “The Marvelous Mrs. Maisel” has been renewed for a fourth season at Amazon, Variety has learned. The news comes less than a week after the third season debuted, with the whole season dropping on the streamer on Dec. 6. The move comes as now surprise, however, given the critical success the show has enjoyed since [...]

  • Audra McDonald/Geena Davis

    Geena Davis and Audra McDonald to Be Honored at 35th Annual Artios Awards

    Geena Davis and Audra McDonald will be honored by the Casting Society of America (CSA) at the 35th Annual Artios Awards, the organization announced Thursday. Oscar winner and advocate Geena Davis will receive the Lynn Stalmaster Award for Career Achievement at the Los Angeles ceremony. Emmy, Grammy and Tony winner McDonald will be honored with [...]

  • Netflix Releases Explosive Final Trailer For

    Netflix Releases Explosive Final Trailer For 'The Witcher'

    Only eight days away from the series’ release, Netflix dropped the final trailer for its highly anticipated eight-episode first season of “The Witcher.” Best on Andrzej Sapkowski’s bestselling fantasy series of books, “The Witcher” stars Henry Cavill (“Justice League”) as monster hunter Geralt of Rivia, Freya Allan (“The War of the Worlds”) as the young [...]

  • Orlando Bloom

    Orlando Bloom Sets First-Look Deal With Amazon

    “Carnival Row” star Orlando Blook has inked a first-look deal with Amazon, Variety has learned. Under the deal, Bloom will develop television and film projects for Prime Video. Bloom currently stars on Amazon’s “Carnival Row” alongside Cara Delevigne. The series premiered back in August and was renewed for a second season ahead of the series premiere. The [...]

More From Our Brands

Access exclusive content