Disney Wins Affirmance of Dismissal of Derivative Action

On behalf of current and former directors and executive officers of The Walt Disney Company, on December 26, Skadden secured an affirmance from the U.S. Court of Appeals for the Ninth Circuit of a district court dismissal of a shareholder derivative action. The plaintiff's claims were based on Disney's alleged participation in an illegal conspiracy to reduce labor competition and depress employee wages in the animation industry. Skadden persuaded the Ninth Circuit to affirm the district court's order on grounds of plaintiff’s failure to satisfy Rule 23.1’s demand futility requirement.