Allies of Florida Gov. Ron DeSantis and Disney have reached a settlement agreement in a lawsuit concerning control of Walt Disney World’s governing district. The board of the Central Florida Tourism Oversight District approved the settlement, bringing an end to nearly two years of litigation that began when DeSantis took over the district from Disney supporters. This move came after Disney expressed opposition to Florida’s 'Don’t Say Gay' law, which prohibits classroom discussions on sexual orientation and gender identity in early grades.
The legislation, enacted in 2022 and supported by DeSantis, led to tensions between the governor and Disney, with the company becoming a focal point in his speeches until he suspended his presidential campaign earlier this year. In response to Disney's stance against the law, DeSantis seized control of the governing district through legislation passed by the Republican-controlled Florida Legislature, appointing a new board of supervisors. Disney subsequently filed a lawsuit against DeSantis and his appointees, alleging violations of the company’s free speech rights for speaking out against the legislation. However, a federal judge dismissed this lawsuit in January.
Prior to the transition of control from Disney allies to DeSantis appointees, supporters of Disney on the board had signed agreements with the company, granting Disney control over design and construction at Disney World. The new appointees by DeSantis argued that these agreements limited their authority, leading the district to file a lawsuit in state court seeking to invalidate the contracts. In response, Disney filed counterclaims, seeking to affirm the validity and enforceability of the agreements.