News Reedy Creek Improvement District and the Central Florida Tourism Oversight District

Tha Realest

Tha Realest

Well-Known Member
Disstevefan1

Disstevefan1

Well-Known Member
MisterPenguin said:
Article from Aug 2019.

Anyone know whatever came of it?
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If I remember correctly, the Disney employee reported that Disney would sell a gift card, claim that as income then again claim purchases from that card as income again.

The Disney employee got fired for reporting that.

I (think) the employee sued Disney and recently won the lawsuit.

Someone correct me if I am wrong.
 
GoofGoof

GoofGoof

Premium Member
Disstevefan1 said:
If I remember correctly, the Disney employee reported that Disney would sell a gift card, claim that as income then again claim purchases from that card as income again.

The Disney employee got fired for reporting that.

I (think) the employee sued Disney and recently won the lawsuit.

Someone correct me if I am wrong.
Click to expand...
She didn’t win the lawsuit. It was settled out of court. So she got a payout which I guess is all that matters. As far as the original claim of fraud, there was never even an SEC investigation let alone a finding of wrong doing by the company. I don’t know the specifics, but the SEC takes these things really seriously so it seems like an unfounded claim.
 
flynnibus

flynnibus

Premium Member
Disstevefan1 said:
If I remember correctly, the Disney employee reported that Disney would sell a gift card, claim that as income then again claim purchases from that card as income again.

The Disney employee got fired for reporting that.

I (think) the employee sued Disney and recently won the lawsuit.

Someone correct me if I am wrong.
Click to expand...
Not quite...

Employee claimed the accounting of the revenue was wrong in several examples. Reported it internally a few times over several years and it didn't get changed. (like period of 2013 to 2017)

In 2017, she filed complaints with SEC about it (whistleblower).. not long after Disney fired her for cause claiming other workplace issues. She complained about being a whistleblower and punished. Eventually sued Disney over it.

The SEC never went after Disney after looking at it... not siding with her. Even tho the complaint is Disney could have overstated revenue by as much as 60% for P&R.

She filed a whistleblower complaint with the Dept of Labor... and they didn't side with her either.

in 2022 Disney and the employee eventually settled (didn't goto trial).

So either she's wrong, not enough to prove it, it's a grey area... or Disney controls the SEC and the Dept of Labor during the Trump administration.
 
Disstevefan1

Disstevefan1

Well-Known Member
GoofGoof said:
She didn’t win the lawsuit. It was settled out of court. So she got a payout which I guess is all that matters. As far as the original claim of fraud, there was never even an SEC investigation let alone a finding of wrong doing by the company. I don’t know the specifics, but the SEC takes these things really seriously so it seems like an unfounded claim.
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She got paid to drop it.

Actually, a smart move in my opinion.
 
GoofGoof

GoofGoof

Premium Member
Disstevefan1 said:
She got paid to drop it.

Actually, a smart move in my opinion.
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For her, yeah. It was a money grab. Plenty of people sue Disney and other big companies all the time hoping to get paid.

It is silly to claim that this case shows Disney would be opposed to whistleblower protection. Filing a whistleblower complaint doesn’t exempt you from ever being terminated for cause. The settlement wasn’t an admission of guilt.
 
JoeCamel

JoeCamel

Well-Known Member
flynnibus said:
Not quite...

Employee claimed the accounting of the revenue was wrong in several examples. Reported it internally a few times over several years and it didn't get changed. (like period of 2013 to 2017)

In 2017, she filed complaints with SEC about it (whistleblower).. not long after Disney fired her for cause claiming other workplace issues. She complained about being a whistleblower and punished. Eventually sued Disney over it.

The SEC never went after Disney after looking at it... not siding with her. Even tho the complaint is Disney could have overstated revenue by as much as 60% for P&R.

She filed a whistleblower complaint with the Dept of Labor... and they didn't side with her either.

in 2022 Disney and the employee eventually settled (didn't goto trial).

So either she's wrong, not enough to prove it, it's a grey area... or Disney controls the SEC and the Dept of Labor during the Trump administration.
Click to expand...
Ohhh, I like that last line, must be conspiracy Thursday
 
Disstevefan1

Disstevefan1

Well-Known Member
JoeCamel said:
Ohhh, I like that last line, must be conspiracy Thursday
Click to expand...
TinFoilIger.jpg
 
GoofGoof

GoofGoof

Premium Member
Route2 said:
There's no way a publicly traded corporation, audited by a big four acccounting firm could overstate P&R revenue by 60%. Didn't happen and couldn't happen. I worked in finance for a firm that used at different times KPMG and PWC and they'd find it quickly -- especially since this involved the recording of revenue and a cash equivalent.

Unless someone has a link to the real report I say this is not the complete story. Most likely a low level CW at a retail shop that saw a sale or two mis-recorded and ran to get his/her supervisor in hot water.
Click to expand...
Unfortunately it’s not an uncommon occurrence. I work for a public company and we had an employee who was on the path to being fired and filed a whistleblower complaint to try to keep his job. He also accused the company of accounting fraud. In this case he wasn’t an accountant and what he called “fraud” was actually the required way to account for the transaction. The claim was investigated and dismissed quickly and he was eventually fired for cause.

According to the attached article, in the Disney case the company says she was fired because “she displayed a pattern of workplace complaints against co-workers without a reasonable basis for doing so, in a manner that was inappropriate, disruptive and in bad faith.”

www.marketwatch.com

Disney whistleblower told SEC the company inflated revenue for years

A then–Walt Disney Co. accountant filed multiple whistleblower tips with the Securities and Exchange Commission alleging the company materially overstated...
www.marketwatch.com www.marketwatch.com
 
L

Lilofan

Well-Known Member
Route2 said:
There's no way a publicly traded corporation, audited by a big four acccounting firm could overstate P&R revenue by 60%. Didn't happen and couldn't happen. I worked in finance for a firm that used at different times KPMG and PWC and they'd find it quickly -- especially since this involved the recording of revenue and a cash equivalent.

Unless someone has a link to the real report I say this is not the complete story. Most likely a low level CM at a retail shop that saw a sale or two mis-recorded and ran to get his/her supervisor in hot water.
Click to expand...
If this was the case, why did Disney settle with the whistleblower and pay the person $$ to keep quiet?
 
GoofGoof

GoofGoof

Premium Member
Lilofan said:
If this was the case, why did Disney settle with the whistleblower and pay the person $$ to keep quiet?
Click to expand...
Because it would cost more to go to court and win. It’s business. Whatever the outcome there is going to be a cost. If the settlement is cheaper than the legal fees to win you do the settlement. You are reading way too much into this if you think they were admitting guilt or paying to keep her silent. There was no gag order and you can find quotes from her after the settlement talking about it. It was a simple business decision.
 

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