A significant corporate drama is unfolding at Disney as a consortium of its shareholders, led by two prominent “pro-democracy” organizations, has initiated a formal investigation into the company. The inquiry seeks to determine if Disney’s leadership potentially violated its fiduciary duties by acceding to political pressure from the Trump administration concerning the recent suspension of television host Jimmy Kimmel.

The investigation was formally launched via a letter dated September 24, addressed to Disney CEO Bob Iger, from the American Federation of Teachers (an AFL-CIO affiliate) and Reporters Without Borders. These groups are demanding access to Disney’s internal communications and documents related to ABC’s abrupt decision to take Kimmel off the air earlier this month. The suspension, though lasting only one week, sparked considerable controversy, accusations of government interference, and even a dip in Disney’s stock value.

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The core of the organizations' allegation is that “There is a credible basis to suspect that the [Disney] Board and executives may have breached their fiduciary duties of loyalty, care, and good faith by placing improper political or affiliate considerations above the best interests of the Company and its stockholders.” This claim is strongly tied to a specific timeline of events: On September 17, ABC announced the “indefinite” suspension of Jimmy Kimmel Live!after Kimmel made critical remarks about “the MAGA gang” following the murder of conservative activist Charlie Kirk.

This was almost immediately followed by FCC chairman Brendan Carr’swarning to ABC affiliates about potential “news distortion” complaints if Kimmel remained on air, leading approximately 70 affiliates to pull the show. Subsequently, President Donald Trump weighed in on social media, threatening to sue ABC and claiming past financial concessions. By September 23, Kimmel had returned to the air, and that night’s episode achieved the highest ratings in the show’s history, despite continued blackouts on stations owned by Sinclair and Nexstar.

The shareholders’ demand for information is underpinned by Delaware law, which permits such requests when there is potential evidence of a breach of fiduciary duty. If Disney’s leadership is found to have capitulated to government threats to the detriment of shareholder value, the board could face legal action. The letter specifically highlights a 3.3% decline in Disney’s stock during the period of Kimmel’s suspension, asserting that this disruption caused “significant declines” and enduring damage to the company’s reputation. Although shares partially recovered upon Kimmel’s return, critics argue the entire controversy raised serious questions about Disney’s independence from political influence.

Clayton Weimers, Executive Director of Reporters Without Borders USA, emphasized the broader implications of the investigation, stating, “Despite Jimmy Kimmel’s return to late night, this affair is far from over. The FCC continues to threaten media organizations over content it doesn’t like and, in the case of Kimmel, dozens of affiliates are still refusing to air his show. The public needs to know how government actions toward the media unfolded in this instance, so we can stop this reckless assault on the First Amendment from going any further.” Randi Weingarten, President of the AFT, echoed this call for transparency, remarking, “Disney shareholders deserve the truth about exactly what went down inside the company after Brendan Carr’s threat to punish ABC unless action was taken against Jimmy Kimmel.

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The Disney board has a legal responsibility to act in the best interests of its shareholders — and we are seeking answers to discover if that bond was broken to kowtow to the Trump administration.” The fallout from the Kimmel suspension continues to be monitored closely.