A new report from Market Watch has been making the rounds on the internet since early this morning claiming that a complaint against Disney has been filed with the Secruities and Exchange Committee(SEC).
An ex-employee named Sandra Kuba, a former senior financial analyst for Disney, is claiming that the Disney Corporation has been (specifically employees in the Parks and Resorts department) have been inflating their annual revenue for years now. Everything from sales tax on food and drinks bought at the parks, to discounted gift cards and hotel rooms has had it’s revenue (allegedly) adjusted.
As reported to Market Watch, in the 2008-09 financial year, Disney’s revenue could have been overstated as much as six billion dollars from their reported $10.6 billion dollar in 2009.
Sandra Kuba has stated that the figures were adjusted by manipulating flaws in the accounting software, which made this supposed inflation hard to trace if anyone were to look for it. Kuba, an employee of Disney for eighteen years, was fired in September of 2017 for bringing her concerns to the SEC.
In response to her fillings with the government, a Disney representative had this to say:
“The claims presented to us by this former employee — who was terminated for cause in 2017 — have been thoroughly reviewed by the company and found to be utterly without merit; in fact, in 2018 she withdrew the claim she had filed challenging her termination. We’re not going to dignify her unsubstantiated assertions with further comment.”
That’s harsh, man.
While this could all be the plight of a disgruntled former employee, and it is strange that we haven’t heard of these claims in the past two years when they were first filed with the SEC. If any of this is true, what could the implications be? While I doubt Disney would take that much of a hit, as they’re basically a happy version of the Umbrella Corporation, with back up plans for their back up plans, what could this mean if an official investigation into Disney Co. is opened?
And what other figures could Disney be adjusting behind the scenes?