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Disney agrees to $9.5-million preliminary settlement in Magic Key lawsuit

Rishat IslamRishat IslamSeptember 9, 2023
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Disney agrees to $9.5-million preliminary settlement in Magic Key lawsuit
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FILE - In this Jan. 22, 2015 file photo, visitors walk to Sleeping Beauty Castle in the background at the Disneyland Resort in Anaheim, California.  A teenage girl traveling from New Zealand to Southern California this month contracted a highly contagious case of measles and may have exposed others at Disneyland and a nearby hotel, health officials said Friday, Aug. 23, 2019.  (AP Photo/Jae C. Hong, File)

An initial $9.5 million settlement has been reached in a class-action lawsuit over Disneyland’s Magic Key program. More than 100,000 people receive payments. (Jay C. Hong/Associated Press)

The Walt Disney Company has agreed to pay $9.5 million to settle a class-action lawsuit over Disneyland’s Magic Key pass program.

The charge: Recorded in 2021 According to Dream Key pass holder Jenale Nielsen – Disney announced that this particular pass, its most expensive offering, has no expiration date.

After purchasing a $1,399 annual pass in September 2021, a month after Disney revamped its annual pass program under the Magic Key moniker, Nielsen learned she couldn’t hold a ticket for most of November, even though single and multi-day tickets were still available. Temporarily available. She soon found more restrictions, according to the suit.

An agreement to settle the lawsuit was announced in early July without details. The initial agreement announced Friday covers 103,435 DreamKey pass holders, all of whom will be automatically enrolled to receive payments from the $9.5 million fund unless they opt out.

Read more: Disney reached a class-wide settlement on the Magic Key annual pass program

The total amount will be determined after a number of deductions, including attorneys’ fees for both parties, a service award for Nielsen and an estimated administrative expense of $147,547 for the settlement administrator.

The preliminary agreement estimates that each class member will receive about $67.41, although there may be a second round of payments depending on how much is left after the initial distribution and payments.

“We are satisfied that this matter has been resolved,” Disney officials said in an emailed statement to The Times in July. Nielsen’s attorneys did not immediately respond to a request for comment Friday.

The contract is scheduled to be finalized in federal court on October 7.

Times staff writer Kerry Blacking contributed to this report.

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This story appeared first Los Angeles Times.

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