Disney, Fox continued in US for US $ 1bil by Genting about the theme park of Malaysia – business news



Walt Disney Co and Twenty-First Century Fox Inc. were sued for more than US $ 1 billion on Monday by casino executive Genting Malaysia Bhd , who accused them of giving up a contract in connection with the planned construction of the first theme park with the Fox brand.

Genting said that "the seller's regret" prompted Fox, with Disney's help, to terminate the 2013 contract with Fox Entertainment Group to license intellectual property for Fox World, a proposed addition to Resorts World Genting- complex, an hour's drive from Kuala Lumpur.

Disney did not respond immediately to requests for comments. Dan Berger, a spokesman for Twentieth Century Fox Film, one of the suspects, declined to comment.

The lawsuit has been filed in the Los Angeles District Court, while Disney is preparing to complete the purchase of many Fox assets worth $ 71.3 billion, expected in the first quarter of 2019.

Genting said the problems started when Fox was making a long period of delays to renegotiate the contract, so it did not take part in the sale of gates.

But according to the complaint, Disney is now "the boss" and wants to terminate the contract because associating with a gaming company did not fit in with its "family-friendly" brand strategy.

Genting said that Fox issued a notice of default in the hope of terminating the contract, in a way that "is fully in agreement with Disney who wants to close the deal" to help themselves.

"Since FEG was not entitled to terminate the agreement, Fox and Disney are liable for damages of more than one billion dollars due to the malicious behavior of both Fox and Disney," the complaint said.

Genting said it had already done a $ 750 million plus investment in Fox World. It is also looking for punitive damage.

According to the complaint, Resorts World Genting contains the only legal casino on mainland Malaysia, seven hotels, shopping centers, performances, gondola lifts and numerous restaurants, bars and clubs. Every year, more than 23 million people visit the complaint.

The case is Genting Malaysia Bhd. Fox Entertainment Group LLC et al., US District Court, Central District of California. 18-09866. – Reuters


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