Disney and Fox refuse claims as part of lawsuit over a theme park in Malaysia

REUTERS: Walt Disney Co. and Twenty-First Century Fox Inc. on Tuesday dismissed charges contained in a lawsuit by a casino operator in Malaysia, accusing them of abandoning a related license agreement to the construction project of a brand Fox amusement park.

Disney and Fox said Genting Malaysia Bhd's respective claims against them were "baseless".

Genting shares fell 16.7% on Tuesday, a day after the Kuala Lumpur-based company sued US media and entertainment companies in Los Angeles for more than $ 1 billion. The decline took place before Disney and Fox published their statements.

According to the complaint, Fox Entertainment Group, under pressure from Disney, breached a contract entered into in 2013 to license its intellectual property for a theme park project in the Resorts World Genting complex, an hour's drive from Kuala Lumpur, the Malaysian capital.

Genting blamed Fox for years of delay and said Disney, which buys many of Fox's assets for $ 71.3 billion, decided to back off because the partnership with a gaming company did not fit. not in its "family-friendly" branding strategy.

The complaint also stated that Fox had issued a default notice in a manner consistent with Disney's wish to "kill the agreement".

Twentieth Century Fox Film, one of the accused, rejected this allegation. "The allegation that Disney, rather than Fox, has finally decided to declare a default is simply invented," said a spokesman.

Genting said more than 23 million people visit the Resorts World Genting each year, which includes a casino, seven hotels, shopping malls, auditoriums, gondola lifts and numerous restaurants, bars and clubs.

The case concerns Genting Malaysia Bhd c. Fox Entertainment Group LLC et al., US District Court, District 18-09866.

(Report by Jonathan Stempel in New York, edited by Tom Brown)