Genting sues Walt Disney and Fox for US$1 billion for breach of contract
According to a Reuters report, casino operator Genting Malaysia Bhd is suing Walt Disney Co and Twenty-First Century Fox Inc for more than US$1 billion.
The law suit is the result of these companies abandoning a contract related to the construction of the first Fox-branded theme park in Genting highlands.
According to Genting it was “seller’s remorse” that induced Fox, with Disney’s help, to breach its 2013 contract with Fox Entertainment Group to license intellectual property for Fox World, a proposed addition to its Resorts World Genting complex, an hour’s drive from Kuala Lumpur.
The lawsuit was filed in the U.S. District Court in Los Angeles as Disney prepares to complete its $71.3 billion purchase of many Fox assets, expected in the first quarter of 2019.
Genting said that one of the reasons for the delay was because Fox wanted to renegotiate the contract to give it a share of gate sales in addition to Disney’s grouse that a gaming company would not fit its family friendly brand strategy.
Genting said Fox issued a default notice with the hope of terminating the contract.
“Given that FEG had no right to terminate the Agreement, Fox and Disney are liable for what will exceed a billion dollars in damages attributable to the bad-faith behaviour of both Fox and Disney,” the complaint said.
Genting said it had already made a “$750 million-plus investment” in Fox World. It is also seeking punitive damages.
The lawsuit has been filed as Genting Malaysia Bhd v Fox Entertainment Group LLC et al, U.S. District Court, Central District of California, No. 18-09866.