A lawsuit filed against Disney this month in California federal court accuses the company of hiding Disney+ costs and making misleading forecasts about the platform's potential profitability.
The suit specifically alleges that former CEO Bob Chapek engaged in a "cost-shifting scheme," concealing Disney+ expenses via the company's legacy TV networks.
- According to the suit, Disney aired certain shows produced for the Disney+ platform on cable first, as a way of inaccurately boosting the streaming platform's numbers and concealing its "decelerating subscriber growth, losses, and cost overruns."
- The suit names a few specific shows that it alleges were part of the scheme, including "The Mysterious Benedict Society" and "Doogie Kameāloha, M.D."
- Disney declined to comment on the lawsuit.