Disney, Fox sued the United States $ 1 billion for theme park Malaysia

(Reuters) – Walt Disney Co (DIS.N) and Twenty-First Century Fox Inc (FOXA.O) were sued Monday for more than a billion dollars by casino operator Genting Malaysia Bhd (GENM.KL), who accused them of abandoning a contract related to the planned construction of the first Fox brand theme park.

According to Genting, "seller's remorse" has led Fox, with Disney's help, to break its 2013 contract with Fox Entertainment Group, regarding the Fox World intellectual property license, Resorts complex extension project. World Genting in Kuala Lumpur.

Disney did not immediately respond to requests for comment. Dan Berger, a spokesman for Twentieth Century Fox Film, one of the defendants, declined to comment.

The lawsuit was filed in the US court in Los Angeles while Disney was preparing to finalize the purchase of many assets of Fox for $ 71.3 billion, scheduled for the first quarter of 2019.

Mr. Genting said the problems started when Fox took years to force a renegotiation of the contract, which did not give him a share of sales at the door.

But, according to the complaint, Disney "currently takes things in hand" and wants to end the contract because the association with a gaming company did not correspond to its brand strategy "friendly for the family".

Mr. Genting stated that Fox had issued a notice of default in the hope of terminating the contract, in a manner "entirely consistent with Disney's desire to terminate the transaction" for profit.

"Given that the FEG did not have the right to terminate the contract, Fox and Disney are responsible for what will exceed the $ 1 billion of damages attributable to the bad faith behavior of Fox and Disney," he said. declared the complaint.

Genting said it has already made an "investment of more than $ 750 million" in Fox World. He also seeks punitive damages.

According to the complaint, Resorts World Genting includes Malaysia's only legal land-based casino, seven hotels, shopping centers, entertainment venues, gondolas and numerous restaurants, bars and clubs. More than 23 million people visit each year, according to the complaint.

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