A judge in Wilmington, Del., tossed out a lawsuit filed by Disney shareholders in the wake of the $130 million-plus settlement with former second banana Mike Ovitz. The shareholders claimed that Disney CEO Michael Eisner cut the deal to avoid embarrassment and that the board of directors went along because it is riddled with conflicts of interest.
The judge rejected the claim last month, saying, "I simply do not agree with shareholders' characterization of the agreement ... as so one-sided that no businessperson of sound judgment could conclude that Disney received adequate consideration." Plaintiff's lawyer Steven Schulman promised an appeal but so far has not filed.
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