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- A former Disney senior accountant has accused the entertainment titan of overestimating his multi-billion dollar earnings.
- Sandra Kuba claimed that Disney employees had recorded non-existent sales of promotional gifts and artificially inflated revenue generated by gift cards.
- She said the company's revenues could have been overestimated by $ 6 billion, or 20%, in 2009 alone.
- Disney rejected Kuba's claims as "absolutely baseless".
- Watch the live Disney trade.
A former senior accountant atDisney accused the titan of entertainment of having overstated his income by billions of dollars.
Sandra Kuba, who worked at Disney for 18 years, filed her claims in whistleblower filings with the Securities and Exchange Commission.
The allegations were reported by Marketwatch, who reviewed the documents filed and the vouchers. Disney rejected the claims as "absolutely unfounded".
In the filings, alleged Kuba employees in Disney's Parks and Resorts division recorded non-existent revenues from free golf games and promotions for their guests. She stated that the workers recognized the face value of $ 500 for gift cards as income, even though customers bought them at a discount of 20%.
They also double counted gift card revenue by recording sales when customers purchased and used them, and they recognized revenue from gift cards donated to guests free of charge, she said.
Disney's revenues could have been overestimated by nearly $ 6 billion – about 20% – just in 2009, Kuba told Marketwatch. According to the group 's annual report, the parks and resorts division accounted for almost 30% of total business in that year. The flaws in the company's accounting software have helped hide revenue manipulation, Kuba added.
Kuba reported the problems to management in 2013, brought them to the attention of a senior executive in 2016 and reported them to the SEC in August 2017, she told Marketwatch. She was fired about a month later and filed a reprisal complaint with the Ministry of Labor in October 2017.
Disney told government investigators that he had fired Kuba because "she has presented a series of workplace complaints against coworkers without reasonable grounds, inappropriately, disruptive and in bad faith, "according to Marketwatch.
Kuba has filed two other whistleblower statements since leaving Disney. In June, she alleged that some Disney employees had attempted to reduce the company's sales taxes by reclassifying products from heavily taxed products, such as hotel rooms, into products from less taxed products. , such as food and beverages, reported Marketwatch.
"The claims brought to us by this former employee – who was fired for just cause in 2017 – have been thoroughly reviewed by the company and found to be absolutely without merit – in fact, in 2018, she withdrew the claim that She was contesting, "a Disney spokeswoman told Marketwatch. "We will not give his unsubstantiated claims any further comments."
Markets Insider solicited comments from Kuba and Disney. We will update the story if we receive an answer.
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