Two Disney shareholders, the American Federation of Teachers and Reporters Without Borders, have demanded internal documents related to ABC's decision to suspend Jimmy Kimmel's show. The groups sent a letter to CEO Bob Iger on September 24, invoking Delaware law to obtain information about potential breaches of fiduciary duty.
The shareholders allege that Disney may have violated its obligations by capitulating to pressure from the Trump administration. They cite a 3.3% drop in Disney's stock from September 18-23 following the suspension, though shares later recovered. The letter claims there is a credible basis to suspect the board and executives placed political considerations above shareholder interests.
ABC suspended 'Jimmy Kimmel Live!' on September 17 after comments Kimmel made about 'the MAGA gang'. The show returned on Tuesday, September 19, with its highest-rated episode ever. However, about 70 ABC affiliates operated by Sinclair and Nexstar, covering 23% of US TV households, refused to air the show after FCC chairman Brendan Carr threatened 'news distortion' complaints.
The letter also references President Trump's social media post threatening to 'test ABC' over Kimmel's reinstatement, and the $16 million Disney paid to settle Trump's defamation lawsuit against ABC News. The groups say this makes their concerns 'even more timely'.
Among the documents requested are those related to financial or reputational impacts from threats by Nexstar or Sinclair to preempt the show. Clayton Weimers of Reporters Without Borders said the affair is 'far from over', while Randi Weingarten of the American Federation of Teachers stated that 'Disney shareholders deserve the truth'. Disney has not yet responded to a request for comment.
