Disney, Fox Accused of Backing Out of Malaysia Theme Park in $1.75 Billion Lawsuit

Disney’s multi-billion dollar acquisition of the majority of Fox’s entertainment assets has left a lot of previous plans up in the air. According to a new lawsuit, it seems plans Fox made in 2013 to compete in the theme-park business have also become a casualty of the Disney merger.

On Monday, Malaysian resort and casino developer and operator Genting Malaysia Berhad [GENM] filed a $1.75 billion lawsuit against Fox and Disney, accusing the Hollywood companies of breach of contract and saying that Fox has abused its power to attempt to delay development of a theme park in order to trigger termination clauses in the contract.

Also Read: Disney Smashes Earnings Expectations Ahead of Fox Acquisition

“Initially [Fox Entertainment Group] wanted to use its leverage under the [memorandum of agreement] to threaten termination and force a renegotiation of the economic terms of what it viewed as a below-market deal,” the lawsuit reads. “Though [Fox] is contractually required to extend the key milestone deadlines if it or a party other than GENM is at fault for the delays leading to these deadlines being missed, [Fox] has consistently refused to take responsibility for the delays it has caused through its abuse of its approval rights and other improper behavior.”

The suit continues, “Instead, [Fox] has repeatedly shifted blame to GENM in order to threaten termination in bad faith and force GENM to agree to renegotiate the [agreement] to [Fox’s] benefit rather than risk losing its investment of hundreds of millions of dollars.”

A Fox spokesman said in a statement: “This lawsuit is entirely without merit. As the complaint itself makes clear, Genting has been failing to meet the agreed-on deadlines for several years, long before the 21CF-Disney agreement. The allegation that Disney, rather than Fox, finally decided to declare a default is simply made up. We look forward to presenting all the facts in the appropriate forum.”

Genting Malaysia says it has invested roughly $750 million in the project already, despite only being required to spend $130 million. Fox, the lawsuit said, did not invest any of its own money in the project.

Also Read: Disney Parks Are Popular Spots for Loves Ones' Ashes, WSJ Discovers

The suit also names Disney as a defendant, saying executives are now calling the shots and trying to cancel the development.

“On information and belief, Fox’s soon-to-be owner Disney was now calling the shots, and its objective was no longer renegotiation of the [agreement], but termination,” the lawsuit reads. “Unlike Fox… Disney wanted no association with a gaming company like GENM due to Disney’s ‘family-friendly’ brand strategy.”

A spokesman for Disney said in a statement to TheWrap: “The claims made against Disney in this matter are utterly without merit.”

In the suit, Genting Malaysia says the plan was for what would be known as Fox World, which was intended to be the new centerpiece of Genting Malaysia’s mountain resort an hour outside of Kuala Lumpur, the capital of Malaysia.

Also Read: What's Next for Fox Film CEO Stacey Snider After Disney Closes Deal?

Genting Malaysia says Fox has fought the company at every turn to delay the project. As one example, the developer said Fox insisted they replace one of Genting’s preferred vendors with what the developer said was a less-qualified choice — “a vendor whose inexperience and unethical business practices led to its termination from the project and months of delays.”

Genting also accuses Fox of failing to provide industry-standard style guides and digital assets for its licensed properties, including its 20th Century Fox logo, and of failing to provide the on-site support the companies agreed to under the agreement.

“Seller’s remorse — first by Fox and later by Disney — is not a valid ground for terminating an agreement,” the lawsuit reads. “[Fox] has no valid grounds on which to terminate the [agreement] and has improperly conspired with Disney to sabotage the Fox World project.”

Pamela Chelin contributed to this report.

A Timeline of Disney's Animated Animal Sidekicks, From Mushu to Sven (Photos)

"Mulan" celebrates its 20th birthday on June 19, having come out on that day in 1998. The beloved Disney film is based on a Chinese legend and tells the story of a young girl, Mulan, who impersonates a man to take her sick father's place in the fight against an invading Hun army. The movie was well-received by critics, earning multiple Golden Globe and Academy Award nominations, and grossed $304 million at the box office. In addition to the title heroine, "Mulan" starred Eddie Murphie as a small red dragon named Mushu, who serves as a guardian for Mulan throughout the movie. In honor of Mulan's 20th birthday, take a look back at some of Disney's most iconic animal sidekicks.
Jiminy Cricket, “Pinocchio” (1940)

This little cricket went from a minor character in the original 1881 novel by Carlo Collodi to a star player in the 1940 Disney film. He serves as the conscience of Pinocchio and tries to keep him out of trouble throughout the film.
RKO Radio Pictures
Thumper, "Bambi" (1942)

This young rabbit from the 1942 Disney classic teaches his best friend how to speak and skate on ice. He also put his own spin on the enduring phrase: "If you can't say something nice, don't say nothing at all." Thanks for the tip, Thumper!

RKO Radio Pictures
Gus and Jaq, “Cinderella” (1950)

Jaq is smart and skinny, Gus is chubby and not too bright, but together they serve as Cinderella's best friends and closest confidants. While dodging the ever-hungry Lucifer, these two mice help find a ribbon for Cinderella's dress, get turned into horses so they can pull Cinderella's chariot, and steal the key to Cinderella's room from her evil stepmother so she can escape and marry Prince Charming.
RKO Radio Pictures
Archimedes, “The Sword in the Stone” (1963)

Archimedes is Merlin's pet owl and Arthur's teacher. He teaches Arthur about history, shows him how to fly and helps him find the sword in the stone.
Buena Vista Distribution
Sebastian and Flounder, "The Little Mermaid" (1989)

Flounder goes along with Ariel on all of her adventures, supports her fascination with human things, and ultimately helps her defeat Ursula. Sebastian is the royal court composer and a loyal servant to King Triton, but he's also a loyal friend to Ariel -- helping her win his love and defeat Ursula. Not bad for a tropical fish and a crab!
Buena Vista Pictures
Abu, “Aladdin” (1992)

Abu may be a small monkey and a big thief, but he's loyal to his best friend Aladdin and will do whatever he can for him. He shares his stolen food with hungry children, turns into an elephant to help Aladdin with his disguise to win Jasmine's heart, and transforms into a toy monkey after saving Aladdin's life.
Buena Vista Pictures
Zazu, “The Lion King” (1994)

The king's royal dodo (excuse us, toucan) may not be the world's best babysitter, but he makes up for it with his great singing ("The Morning Report"), his loyalty to Mufasa, and his ability to maintain a sense of humor while living in a bone cage with his boss's murderer. In the end, he takes his rightful place as King Simba's right-hand bird.
Buena Vista Pictures
Meeko and Flit, “Pocahontas” (1995)

Meeko is a greedy racoon and Flit is a loyal hummingbird. Together, they go along with Pocahantas on her visit to Grandmother Willow and try to sabotage her relationship with John Smith -- though they warm up to him in the end, just like Pocahontas.
Buena Vista Pictures
Pegasus, “Hercules” (1997)

Every hero needs a loyal steed, and Hercules is no exception. His winged horse Pegasus is brave, silly, and not too fond of Meg -- but after she saves Hercules' life, goddess and horse work together to help Hercules defeat the Titans.
Buena Vista Pictures
Mushu, "Mulan" (1998)

This dragon may look more like a lizard, but he has a heart of gold and a mouth to match -- and he helps Mulan save China from the evil Hun invaders. Happy 20th, Mushu!
Buena Vista Pictures
Bullseye, “Toy Story 2" (1999)

Even toy cowboys need a way to get around, and Bullseye serves as a loyal -- and adorable -- sidekick for Woody and Jessie.
Buena Vista Pictures
Dory, "Finding Nemo" (2003)

This forgetful fish just kept swimming into our hearts and minds when she helped Marlon find his son in the 2003 Pixar classic -- and twelve years later, she got her own movie as thanks for her hard work.
Pixar Animation Studios
Dug, “Up” (2009)

The lovable golden retriever from Pixar's "Up" is as brave, silly and loyal as they come -- and he can talk about squirrels and giant birds to his heart's content, thanks to a special canine-translating collar.
Walt Disney Studios
Pascal and Maximus, “Tangled” (2010)

They may be different sizes and species, but these two sidekicks help Flynn and Rapunzel stay out of trouble and fall in love. Pascal is a little green chameleon who served as Rapunzel's best friend and confidant during her long imprisonment in the tower. Maximus is a big white stallion who starts out the movie hunting down Flynn with the police -- and ends the movie as a loyal friend to Flynn and Rapunzel and the head of the Royal Guard.
Walt Disney Studios
Sven, "Frozen" (2013)

Kristoff's loyal friend is an excellent example of why reindeers are better than people (according to some). He loves carrots, he can pull sleds like nobody's business, and he earns a medal for helping to save Anna and Elsa from the evil Prince Hans.
Walt Disney Studios
Heihei, "Moana" (2016)

Heihei isn't the smartest chicken in the coop, but he makes up for his low IQ by keeping Moana company on her long voyage across the sea -- and he manages to avoid being turned into Maui's meal along the way.

Also Read: 34 Movies That Have Grossed $1 Billion Worldwide (Photos)
Walt Disney Studios

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As ”Mulan“ turns 20, revisit Disney’s most famous furry, feathery and scaly sidekicks

"Mulan" celebrates its 20th birthday on June 19, having come out on that day in 1998. The beloved Disney film is based on a Chinese legend and tells the story of a young girl, Mulan, who impersonates a man to take her sick father's place in the fight against an invading Hun army. The movie was well-received by critics, earning multiple Golden Globe and Academy Award nominations, and grossed $304 million at the box office. In addition to the title heroine, "Mulan" starred Eddie Murphie as a small red dragon named Mushu, who serves as a guardian for Mulan throughout the movie. In honor of Mulan's 20th birthday, take a look back at some of Disney's most iconic animal sidekicks.

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A Timeline of Disney's Animated Animal Sidekicks, From Mushu to Sven (Photos)

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