Entertainment

Disney drops federal appeal in Florida lawsuit, ending DeSantis fight

Disney dropped its appeal Thursday in its First Amendment lawsuit against Florida Gov. Ron DeSantis, officially ending the two-year battle sparked by the company's opposition to the so-called “Don't” law. Don’t say gay.”

The move comes a day after a state board approved a new 15-year development agreement that will allow Disney to invest up to $17 billion to expand its Orlando theme parks.

“Walt Disney World is inextricably linked to the social fabric of the state of Florida, and the success of Walt Disney World is the success of Central Florida and vice versa,” said Brian Aungst Jr., member of Central Florida Tourism Oversight District. during Wednesday's meeting. “This agreement provides a sustainable and prosperous future for the District, the people of the State of Florida and the Walt Disney Company.”

The governor and the entertainment giant are emerging from the deadly culture war that has dominated headlines in 2022. The battle left Disney in a weakened position, as it lost control of a nearly 40-square-mile area surrounding the parks, which he had enjoyed since 1967.

The development deal allows Disney to build a fifth major theme park in Orlando, as well as up to two additional minor parks. It allows the addition of more than 13,000 new hotel rooms.

Disney also pledged $10 million over 10 years for affordable housing development, and the state board committed to providing infrastructure to support Disney's expansion plans.

The settlement leaves in place a district court ruling rejecting Disney's claim that DeSantis violated its constitutional rights. Disney had alleged that DeSantis unlawfully retaliated for his opposition to the Parental Rights in Education Act, which restricts classroom teaching about sexual orientation and gender identity, and sought to overturn the state takeover.

U.S. District Judge Allen Winsor dismissed Disney's First Amendment lawsuit in January, ruling that Florida had the authority to revoke the district and that its motivations for doing so were irrelevant. At the time, Disney promised to appeal, saying the case had “serious implications for the rule of law.”

“If nothing is challenged, it would set a dangerous precedent and allow states to use their official powers as a weapon to punish the expression of political views with which they do not agree,” he said. a Disney spokesperson at the time.

Disney and DeSantis settled most of their disputes in March, with state lawsuits dismissed and both sides committed to working on the new development plan. Disney agreed to suspend briefing on the federal appeal pending a resolution of the development issue.

The Central Florida Tourism Oversight District — the state-run board that replaced the Disney entity — voted 5-0 Wednesday night to approve a new development agreement.

With the agreement in hand, Disney informed the 11th Circuit Court of Appeals on Thursday that it was dismissing the case.

“All parties to this appeal hereby stipulate to the dismissal of the appeal with prejudice,” the notice states.

Disney had attempted to secure its development rights in February 2023, entering into development deals just before the DeSantis-backed board took control. The new board and legislature decided to rescind these agreements, and under the terms of the settlement, Disney agreed that they were null and void.

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