The Walt Disney Company (NYSE:DIS) contended that a wrongful death lawsuit against it should be dismissed, citing an arbitration clause in their streaming service agreement.
What Happened: The lawsuit was initiated by Jeffrey Piccolo, following the death of his wife, Kanokporn Tangsuan, who allegedly suffered a fatal allergic reaction after dining at an Irish pub in Disney Springs, reported the Associated Press.
The lawsuit seeking more than $50,000, lodged in February, claims that Tangsuan died after consuming food she was assured was allergen-free at the pub.
Disney argues that Piccolo, a Disney+ subscriber, consented to resolve any disputes through arbitration when he signed up for the service. "The Terms of Use, which were provided with the Subscriber Agreement, include a binding arbitration clause," the company wrote in its motion.
"The first page of the Subscriber Agreement states, in all capital letters, that 'any dispute between You and Us, Except for Small Claims, is subject to a class action waiver and must be resolved by individual binding arbitration.'"
However, Piccolo's attorney contends that it is unreasonable to assume that Disney+ subscribers have forfeited all rights to sue the company and its affiliates indefinitely, even for cases unrelated to the streaming service, the report noted citing Aug. 2 filing.
On late Wednesday, the company expressed sympathy over the family's loss but stressed that Disney does not own or operate the Irish pub.
The company did not immediately respond to Benzinga's request for comments. A hearing on Disney's motion is slated for Oct. 2.
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
Why It Matters: Disney's legal troubles have escalated over the last few months. In July 2024, Disney failed to have a lawsuit filed by former "Mandalorian" star Gina Carano dismissed.
Carano was let go from the Disney+ Star Wars series after the studio labeled her social media posts as "abhorrent" and "denigrating" to cultural and religious identities.
In June, an antitrust suit concerning Disney's ownership of Hulu and ESPN also moved forward.
Meanwhile, earlier this month, the company reported its third-quarter earnings, revealing a 4% year-on-year growth to $23.16 billion, largely driven by subscription revenue growth for Disney+.
Price Action: At the time of writing, Disney stocks were slightly down during the after-hours session trading at $86.20. During the regular session, the stock was up by 0.82%, reaching $86.30.