Ron DeSantis and Disney reach settlement in suit over governing control

A settlement has been reached in Florida in a disagreement between the state’s Republican governor and one of the largest employers.

In a notable development emerging from Orlando, allies of Gov. Ron DeSantis and Disney have settled a lawsuit concerning the governance of Walt Disney World’s overseeing district. The Central Florida Tourism Oversight District’s board members approved the settlement on Wednesday, the Associated Press reports, concluding nearly two years of legal disputes triggered by DeSantis’ assertive maneuver against the entertainment conglomerate following its critique of the state’s divisive education statute.

The controversy began in 2022 when Disney publicly challenged the Florida law known as the “don’t say gay” law, which restricts classroom discussions on sexual orientation and gender identity in education. In retaliation, DeSantis, supported by the Republican-led Florida Legislature, seized control of the district’s board, which had been under the influence of Disney proponents, by nominating new supervisors aligned with his agenda. This move was a direct reaction to Disney’s opposition, propelling a complex legal saga.

Disney’s legal action against DeSantis and his appointees, alleging a violation of the company’s free speech rights, was dismissed by a federal judge in January. Before the takeover, the board members favorable to Disney executed agreements that transferred significant authority over design and construction at Disney World to the corporation itself. These agreements became a focal point of contention as the DeSantis-appointed board members contended that such deals effectively diminished their regulatory authority, leading to litigation aimed at invalidating these contracts.

Disney countered with claims seeking judicial affirmation of the agreements’ legality and enforceability. The settlement agreement ends that dispute.

According to Reuters, Walt Disney World President Jeff Vahle said, “This agreement opens a new chapter of constructive engagement with the district’s new leadership.”