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KUALA LUMPUR: Shares of Malaysian casino operator Genting fell nearly 19% on Tuesday (November 27th), after suing Walt Disney Co. and 21st Century Fox for allegedly abandoning construction project A park of attractions in the country.
US $ 1 billion lawsuit filed in Los Angeles US district court says Disney and Fox have not honored the 2013 deal on intellectual property, including animated Fox movies like "Ice Age" and "Planet of the Apes" for the theme park outside Kuala Lumpur.
The lawsuit alleges that Fox was seeking to terminate the contract and that Disney executives also wanted to distance themselves from the project because the park would be adjacent to a casino and would harm the company's "family-friendly" image. .
In a statement to AFP, a Disney spokeswoman dismissed accusations against society as being "absolutely baseless".
Fox's representatives did not immediately respond to a request for comment.
Genting Malaysia Berhad (GENM) said in a message to the local constituency that she was claiming damages exceeding one billion dollars.
He promised "to fully enforce his rights" as part of the agreement and to "claim the cost of his investments and consequential and punitive damages".
"The dispute should not affect GENM's current business activities," the company said.
However, investors have always sold Genting shares, which plunged 18.6% before recovering slightly. They were down 14.72% in the middle of the afternoon.
CGS Brokerage CIMB Securities has described the news of the dispute as a "major negative surprise" for the theme park, whose opening has already been delayed for more than a year.
"Potential legal complications" could also affect the proposed new date for the opening of the park, scheduled for the first half of 2019, he added.
"It was planned that Fox World will become the new centerpiece of Resorts World Genting, GENM's integrated hotel complex in Genting Highlands," according to the lawsuit.
The lawsuit alleges that Fox cited repeated delays in the project to cancel the transaction and recently issued a notice of default, requiring the developer to open the park within 30 days, which is impossible.
"This is a case involving the vendor's remorse, first by Fox, then by Disney, after the latter began the process of acquiring Fox as part of A contract whose conclusion is now scheduled for the first half of 2019, "says the lawsuit.
He added that Genting was entitled to recover the more than 750 million US dollars already invested in the park, as well as indirect and punitive damages exceeding one billion US dollars.
Built on over 10 acres in the idyllic mountain hideaway of the Genting Highlands, an hour's drive from Kuala Lumpur, the park was to feature more than 25 rides and attractions inspired by blockbusters such as "Ice Age", "Life of Pi , "" Alien "and" Night at the museum. "
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