One of the biggest Asian land-based casino operators, the Genting Malaysia Berhad company has announced that it has reached a lawsuit settlement with the Walt Disney Company. The lawsuit was filed last year and after several months, the two companies have finally made a resolution. The Walt Disney company was sued by the Asian operator for around $1 billion for breaching contract.
The lawsuit was the result of the Twenty-First Century Fox and Walt Disney Co abandoning their contract regarding the construction of the very first Fox-operated theme park located on Genting-owned property. According to the Asian operator, this move was seller’s remorse which induced Twenty-First Century Fox with the help of Walt Disney Company to breach its five-years-old contract. By the contract, the Fox Entertainment Group would allow Genting Malaysia Berhad its intellectual property for the purpose of building a Fox Worlds.
This would be the very first facility of this kind built in the Genting Malaysia Berhad’s Resorts World Genting complex located only one hour for the country’s capital Kuala Lumpur. After reportedly breaching their contract, Genting Malaysia Berhad filed the lawsuit in the United States Los Angeles District Court. At the time, the Walt Disney Company was completing for its massive $71.3 billion-worth purchase of several Fox Entertainment assets.
Twenty-First Century Fox Wanted to Renegotiate the Contract
It was reported that one of the main reasons for the construction delay was because Twenty-First Century Fox wanted more time to renegotiate the contract with the main purpose of giving it a certain share of total gate sales. Another reason behind the delay was the Walt Disney Company’s officials believing that a gaming company does not fit its mainly family-friendly business strategy.
The Asian operator shortly after release its official statement in which the company’s official stated that Twenty-First Century Fox issued them a default notice in that they hoped to terminate their contract. However, since the Fox Entertainment Group had no right to ask for the contract termination due to previous agreements, both the Walt Disney Company and Fox Entertainment Group are liable for what eventually exceeded $1 billion in damages done to Genting Malaysia Berhad.
Shortly after the lawsuit was filed, both Fox and Disney have issued their official responses stating that the lawsuit is without merit. Moreover, the Fox Entertainment Group’s officials also stated that the Asian operator has failed to meet their deadlines. The officials also added that Genting Malaysia Berhad made up that the Walk Disney Company was the one to force the termination of the business deal between the two companies.
The Two Companies Reaching the Resolution
As it was reported several days ago, Genting Malaysia Berhad stated that they have reached a resolution after several months of legal battles. In their official press release, the company detailed that it will proceed with their plans to bring a huge park theme to its popular Resorts World Genting casino resort. However, the theme park will be named the Twenty-First Century Fox World.
The company’s officials also added that Genting is currently working on its construction and development plans and it seems that the theme park will only utilize Fox-related intellectual properties. This is actually one part of the settlement in which both parties have agreed that Genting Malaysia Berhad can use Fox-owned intellectual properties.