Disney Employees Sue After Being Asked to Return Following Project Cancellation

Disney employees who relocated for work asked to return after project cancellation, now they're suing

Employees of Walt Disney Company, Maria De La Cruz and George Fong, have filed a lawsuit against their employer, alleging that Disney relocated their jobs from California to Florida under false pretenses, only to cancel the project later. This legal action highlights a contentious issue involving corporate promises, employee relocation, and subsequent financial and emotional distress.

The lawsuit, filed in the Superior Court of California, claims that Disney announced plans in 2021 to relocate approximately 2,000 roles from California to Florida. Employees were informed that those who declined relocation would risk losing their jobs. The relocation was tied to Disney’s ambitious plans to build a $1 billion office complex in Lake Nona, Florida. According to the complaint, Disney made assurances to employees about the longevity and necessity of this move.

However, the situation took a dramatic turn in May 2023 when CEO Bob Iger returned to the helm after Bob Chapek’s departure. Under new leadership and citing changing business conditions, Disney abruptly canceled the Lake Nona project. This decision left relocated employees like De La Cruz and Fong in a precarious position, having uprooted their lives based on Disney’s now-defunct plans.

The plaintiffs contend that they incurred significant financial losses as a result of Disney’s actions. Fong, a creative director, sold his childhood home in Los Angeles to move to Florida, only to find himself forced to relocate back to California shortly after. His Florida property, listed for sale twice, reportedly failed to attract buyers due to Disney’s sudden reversal. Similarly, De La Cruz, vice president of product design, sold her home in Altadena to relocate her family to Florida, only to face the prospect of moving back to California.

The lawsuit accuses Disney of misrepresentation and concealment, alleging that the company failed to disclose its true intentions regarding the Lake Nona project. The plaintiffs seek unspecified damages for the financial hardships, emotional distress, and disruption caused to their lives.

Disney’s ownership of the 60-acre plot in Lake Nona, despite the canceled project, adds another layer of complexity to the case. The company responsible for developing the land has confirmed Disney’s continued ownership, prompting questions about Disney’s future plans for the site.

This legal dispute underscores broader issues surrounding corporate responsibility, employee welfare, and the enforceability of promises made by employers in the context of job relocations. As the case progresses, it is likely to prompt discussions about the rights of employees in such situations and the ethical considerations of corporate decision-making that impacts workers’ lives so profoundly.

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