Los Angeles, California - Disney is facing a class action lawsuit from employees who were told to relocate to Florida for a new $1 billion campus that was later cancelled. The lawsuit accuses the company of misrepresenting its plans and causing significant financial and emotional distress to the affected employees.
In 2021, Disney announced plans to open a new campus in Lake Nona, Florida, for its theme park staff. The company told approximately 2,000 employees in California to relocate or resign.
However, less than two years later, Disney reversed course, citing a change in leadership and a major cost-cutting drive.
The lawsuit, filed by two current employees Maria de la Cruz and George Fong, alleges that Disney's initial announcement led employees to uproot their lives, incurring major moving expenses as they sold family homes and bought new ones.
The complaint argues that Disney's actions caused significant financial and emotional harm to the affected employees.
The lawsuit comes amid a backdrop of rising home prices and mortgage rates in the US, which have made Americans increasingly reluctant to relocate for jobs.
The cancellation of the Lake Nona project also coincided with a high-profile fight between Disney and Florida governor Ron DeSantis over the company's relationship with the state.
The lawsuit claims that Disney's initial plans pushed up home prices in the area, which were hit hard after the project was cancelled. Many employees opted to resign rather than relocate, while others waited for the project to be delayed.
However, about 250 employees had already agreed to the transfer on the timeline set by Disney.
George Fong, one of the plaintiffs, sold his childhood home to move to Florida, only to return to California and live in a smaller house. The lawsuit argues that Disney did not fairly compensate him for the damages he suffered and would continue to suffer.
Since the lawsuit was filed, numerous other employees have expressed interest in joining the class action. Disney has declined to comment on the lawsuit.
The case highlights the challenges faced by employees in the wake of corporate decisions that can have significant impacts on their lives.
