Disney Shareholders Sue Over Ovitz's Severance

A lawsuit from investors seeks repayment, alleges that Ovitz's $140 million severance package was waste of assets.

Ruling on Ovitz's Severance is Upheld - Los Angeles Times (6/9/2006)
The Los Angeles Times reports Delaware's high court finds that Disney's board did not betray its duty to investors.
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Delaware Supreme Court affirms decision on Disney Ovitz case - CBS MarketWatch (6/8/2006)
CBS MarketWatch reports the Delaware Supreme Court Thursday upheld a ruling exonerating the Disney Company's board of wrongdoing in connection with a $140 million severance package paid Michael Ovitz.
Disney Shareholders Appeal Ovitz Ruling - (10/27/2005)
Shareholders continue their pursuit to hold the Disney Company board responsible for the approving the Ovitz's severance package.
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Judge in Disney case warns on soaring exec pay - (10/25/2005)
The presiding judge in the suit regarding Ovitz payoff recommended corporate directors take control of soaring executive pay.
Disney Governance Case Not Over Yet - Reuters (10/7/2005)
Reuters reports the appeal is ready to proceed in the lawsuit filed by shareholders against the Disney Board of Directors over the Ovitz severance.
Shareholders Appeal Ruling on Disney - Los Angeles Times (9/9/2005)
The Los Angeles Times reports the ruling that the Disney board did not breach its fiscal duties in its hiring and subsequent firing of Michael Ovitz has been appealed by attorneys representing the shareholders who brought the suit.
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Eisner's kingdom - Dallas Star Telegram (8/22/2005)
The Dallas Star Telegram offers portions of Judge Chandler's remarks relating to his ruling in the lawsuit regarding Ovitiz' severance.
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Regulating Fantasyland - New York Times (8/12/2005)
The New York Times discusses the business practices that were impacted by the Ovitz ruling.
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Ovitz ruling shortchanges shareholders - (8/10/2005)
Columnist Susan Strother Clarke discusses the ruling in the lawsuit over the severance package given to Michael Ovitz.
Big Pay Packages May Fade After Ruling on Ex-President of Disney - New York Times (8/10/2005)
The New York Times discusses the probable impact of the ruling over the Ovitz severance package.
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Eisner-Ovitz Case Ends in a Win for Disney - (8/9/2005)
The judge ruled Disney's Board of Directors did not owe shareholders damages as a result of the $140 million severance package offered Ovitz.
Disney Ruling is Expected - New York Times (8/9/2005)
The New York Times reports a decision is expected in the lawsuit brought against the board of the Disney Company by shareholders over the Ovitz severance package.
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Disney Shareholders Claim Eisner Cowed Disney's Board - New York Post (3/8/2005)
The New York Post discusses the latest filing in the ongoing case regarding Disney's hiring and firing of Michael Ovitz.
DisneyWar Whets Appetite for a Battle - Orlando Sentinel (1/28/2005)
According to the Orlando Sentinel the Disney Company has reportedly acquired a copy of a yet to be released Simon & Schuster title, "DisneyWar: The Battle for the Magic Kingdom" and Disney has already put the publisher "on notice" that they would take legal action in response to any inaccuracies within the title.
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Ovitz, Eisner can win and still lose - Orlando Sentinel (1/20/2005)
The Disney shareholder suit regarding the firing of Michael Ovitz will now go to the judge, but the Orlando Sentinel points out that despite the verdict the images of Michael Eisner and Michael Ovitz have been stained.
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Evidence Phase of Disney Trial Ends - (1/20/2005)
The evidence portion of the trial over Disney's 1996 firing of Michael Ovitz has concluded.
CNBC To Air Rebellion in the Magic Kingdom - CNBC on Assigment (1/18/2005)
CNBC on Assigment will focus on the shareholders suit against Disney's board of directors over Michael Ovitz' severance package. The program will air January 24th.
Ovitz Payout Couldn't Be Withheld - Los Angeles Times (1/14/2005)
The Los Angeles Times reports the testimony of former Labor Department lawyer, John C Fox. He described the situation as a "simple failed-performance-expectation case" and that Ovitz would've had to have committed criminal acts to meet California's standards for termination without severance.
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Disney Shareholders Seek Ovitz Documents - (1/14/2005)
Brief overview of the ongoing trial seeking documents relating to Michael Ovitz's severance package.
Expert: Disney Avoided Ugly Ovitz Suit - Associated Press (1/11/2005)
The Associated Press reports California trial lawyer Larry Feldman's testimony that the Disney Company avoided a "very serious ugly lawsuit" by terminating Ovitz's contract on a no-fault basis.
After the Ovitz Trial: Ushering in a New Era of Humility in Hollywood - New York Times (12/20/2004)
The New York Times discusses the impact of the Ovitz' trial.
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Ovitz Severance 'Wise Investment,' Witness Says - Los Angeles Times (12/14/2004)
The Los Angeles Times reports the Monday testimony of former Disney director Robert A.M. Stern.
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Why We'll Miss the Disney Trial - Fortune (12/14/2004)
Fortune talks about the Ovitz trial.
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Disney Committee Discussed Ovitz - Associated Press (12/13/2004)
The Associated Press relays the Friday testimony of former Disney director Ignacio Lozano. Lozano stated that the terms of the contract for hiring Ovitz where the responsibility of the compensation committee, not the full board.
Lots of eyes on Disney trial - USA Today (12/13/2004)
USA Today discusses the possible widespread impact of the court case regarding Ovitz's severance.
Eisner always kept in touch - Variety via Yahoo! (12/13/2004)
Variety via Yahoo! offers the testimony of former Disney board member and chair Raymond Watson. Watson described Michael Eisner as the best executive he's known in terms of keeping the board informed.
Disney foes subject of TV movie - Associated Press (12/13/2004)
The Associated Press reports the battle between Michael Eisner and Mike Ovitz will be transformed into a film for Showtime.
Expert says stock gains countered Ovitz's pay - (12/9/2004)
According to the USA Today Fred Dunbar, a senior vice president at National Economics Research Associates testified that the $140 million severance payment was outweighed by the stock gains which occurred with Michael Ovitz's addition.
Actor Takes Center Stage as Disney Trial - New York Times (12/8/2004)
The New York Times reports the testimony of actor and former Disney director Sidney Poitier.
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Revolt forced Disney reforms - Washington Post (12/8/2004)
The Washington Post discusses the impact of Roy Disney and Stanley Gold's to oust Michael Eisner.
Poitier in the heat of the court room - Financial Times (12/8/2004)
The Financial Times offers actor and former Disney director Sidney Poitier.
Ex-Disney Director Testifies on Ovitz - Miami Herald (11/29/2004)
The Miami Herald discusses the testimony of Dick Nunis in the Disney shareholder lawsuit regaring Ovitz severance.
Don't Hang the Disney Board Just Yet - (11/29/2004)
UCLA law professor Lynn A Stout examines the ongoing Disney shareholder lawsuit.
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Ovitz Was Odd but Diligent, Former Disney Officer Says - New York Times (11/23/2004)
The New York Times offers Monday's testimony by former Disney CFO Stephen F Bollenback.
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Mitchell Testifies on Ovitz's Tenure - Associated Press (11/23/2004)
The Associated Press reports George Mitchell's testimony in the Ovitz lawsuit.
Ovitz's Style a 'Distraction' - Associated Press (11/23/2004)
The Associated Press highlights Stephan Bollenbach's testimony that Ovitz's style didn't mesh well with the Disney company's culture.
Cross-Examination of Eisner Causes Some Tempers to Flare - New York Times (11/22/2004)
The New York Times reports the Friday testimony in the Ovitz lawsuit.
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A Trial William S. Would Have Loved - New York Times (11/22/2004)
The New York Times reviews the recent testimony of Michael Eisner.
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Disney's Eisner: TV Interview with Ovitz Was Dumb - (11/19/2004)
Disney chief Michael Eisner called his comments on Larry King "not completely candid with the public" and described his decision to appear on the program "an extremely dumb thing to do"
Eisner Regrets Praising Ovitz on Larry King - New York Times (11/19/2004)
The New York Times reports Michael Eisner called his appearance on Larry King Live "dumb" and "stupid"
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Ovitz trial puts heat on Eisner - CBSMarketWatch (11/19/2004)
CBSMarketWatch reports the trial over former Disney Company president Michael Ovitz' severance package threatens to open old wounds and tarnish the image of the company's chief executive officer, Michael Eisner.
Eisner: Ovitz would not accept firing - (11/18/2004)
The Orlando Sentinel reports on the Michael Ovitz lawsuit. In today's testimony Disney CEO Michael Eisner testified Ovitz would not accept being fired.
Eisner Says Ovitz Required Oversight Daily - (11/17/2004)
Disney CEO Michael Eisner testified that Michael Ovitz proved a poor fit for Disney's corporate culture.
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Ovitz did not adapt to Disney culture - (11/17/2004)
Disney CEO Michael Eisner described Michael Ovitz as unable to adapt to Disney's corporate culture.
Disney chiefs wanted to quit over Ovitz - (11/17/2004)
Eisner testified that he averted the exodus of various Disney Company executives in May 1996 by promising them he would deal with Michael Ovitz "one way or another" by the end of the year.
Eisner, on Stand, Describes the Courting of Ovitz - New York Times (11/16/2004)
The New York Times offers highlights from Michael Eisner's Monday testimony.
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Eisner's challenge in court is to field tough questions - Orlando Sentinel (11/16/2004)
The Orlando Sentinel offers highlights from Michael Eisner's Monday testimony in the Ovitz lawsuit.
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For $10 a day, you can sign on to Web to watch Disney trial - USA Today (11/16/2004)
USA Today announces the testimony in the Ovitz trial is viewable online at Courtroomconnect.com. Some users may be accessed a $10 / day fee for use.
Ex-Disney Director Sensed Tension Early - Associated Press (11/15/2004)
The Associated Press highlights the testimony of ex-Disney director Roy E Disney. On Monday he testified that he sensed tension early on between Michael Ovitz and Michael Eisner.
Eisner's chance to dish the dirt nears - Financial Times (11/15/2004)
The Financial Times reports Michael Eisner will testify in the Michael Ovitz lawsuit.
Eisner due to testify in bitter Disney trial - Agence France Presse (11/15/2004)
The Agence France Presse reports Michael Eisner may begin his testimony in the Ovitz suit on Tuesday.
Gold Testifies Eisner Briefed Board - Los Angeles Times (11/12/2004)
The Los Angeles Times offers Stanley Gold's Wednesday testimony. Gold stated that he felt "Mr. Eisner was keeping me in the loop" regarding the progress of the talks between the Disney Company and Ovitz.
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Disney, Gold to testify on Ovitz hiring - Orlando Sentinel (11/12/2004)
The Orlando Sentinel reports Stanley Gold and Roy Disney will testify in the suit regarding Michael Ovitz' hiring and firing.
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Witness: Ovitz, Eisner Were Clashing - (11/12/2004)
Stanley Gold's testimony on Friday illustrated that the longtime relationship between Michael Eisner and Michael Ovitz underwent a "slow deterioration" which eventually lead to Ovitz's termination.
Pay Adviser Talks of Role in Ovitz Deal - (11/10/2004)
Graef Bud Crystal during his continued testimony in the Ovitz hearing discussed his part in drafting Ovitz's employment agreement.
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Witness: Ovitz Wanted $50M Signing Bonus - Associated Press (11/9/2004)
The Associated Press reports Michael Ovitz initially wanted a signing bonus of $50 million to join the Disney Company as its president in 1995.
Disney board backed Ovitz just before he was sacked - Financial Times (11/9/2004)
The Financial Times reports the Disney board voted unanimously to re-nominate Michael Ovitz although several knew he was about to be fired.
Witness: Disney Panel Didn't Review Draft - Associated Press (11/8/2004)
The Associated Press reports Disney's compensation committee members didn't review draft of Ovitz' contract.
A Watchdog, But for Whom? - New York Times (11/8/2004)
The New York Times announces Graef Crystal who is known for his critiques of executive pay will be testifying in the Disney / Ovitz trial.
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A Blunder Haunts The Magic Kingdom - Business Week via Boston Channel (11/4/2004)
Business Week via Boston Channel reports the Ovitz lawsuit points out the Company's new challenge, to find a new CEO that can capture the support of the Board.
No Formal Decision Preceded Ovitz Hire - Associated Press (11/3/2004)
The Associated Press discusses Irwin Russell's second day of testimony in the ongoing Ovitz lawsuit.
Ovitz Defends Costs of Gifts Dispensed by Him at Disney - New York Times (11/2/2004)
The New York Times reports Michael Ovitz concluded his testimony on Monday.
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Witness Says Ovitz Was Discussed in 1995 - Associated Press (11/2/2004)
The Associated Press reports Irwin Russell, a former Disney director and chairman of its compensation committee during Ovitz's tenure began his testimony Monday.
Ovitz - Financial Protection Was Important - Yahoo News (11/1/2004)
Yahoo News reports on the Disney / Ovitz case. Michael Ovitz says financial protection was important to him during his contract negotiations.
Ovitz Says He Was Mistaken Over Bonus - Associated Press (10/29/2004)
The Associated Press reports Michael Ovitz during testimony on Friday said he was mistaken when he earlier stated his annual bonus was tied to Eisner's bonus. He was also queried about the sale of a Gulfstream 111 jet.
Ovitz Questioned on CAA Payments - Los Angeles Times (10/29/2004)
The Los Angeles Times offers highlights from Thursday's testimony by Michael Ovitz.
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Like big fish out of water - Los Angeles Times (10/29/2004)
The Los Angeles Times discusses the unique challenges faced by the high-power execs and media who are a part of the Ovitz case which is taking place in Delaware.
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Ovitz Testifies Disney Execs Knew of Agency Pact - Associated Press (10/28/2004)
The Associated Press reports Michael Ovitz during his third day on the stand testified that Disney executives were aware that during his time at the company he was receiving payments for selling his stake in Creative Artists Agency.
Ovitz Testifies He Was Sabotaged at Disney - New York Times (10/27/2004)
The New York Times offers highlights from Michael Ovitz' testimony. Ovitz claimed that his efforts to improve the company were undercut at nearly ever turn.
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Ovitz Defends Disney Severance - The Associated Press (10/27/2004)
The Associated Press shared Michael Ovitz' Wednesday testimony. During the testimony he shared his experiences working at the Disney Company and defended his efforts to add a "guarantee" or protection to his contract if fired.
Ovitz Takes Starring Role at Disney Trial - Reuters (10/26/2004)
The October 27th Reuters discusses Michael Ovitz testimony about his decision to work for the Disney Company.
Disney executives 'hostile to Ovitz before he joined' - Financial Times (10/26/2004)
The Financial Times reports Michael Ovitz' testimony that he received a chilly reception when he joined the Disney Company.
Disney Paid Ovitz Unreasonable Amount - Reuters (10/25/2004)
Reuters reports Kevin Murphy, a University of Southern California business and law professor, testified for shareholders regarding Disney's contract with Michael Ovitz.
Defense Lawyers in Disney Trial Try to Discredit a Witness - New York Times (10/25/2004)
The New York Times discusses the cross-examination on Friday of Prof. John J Donohue. Testimony by the plaintiffs' third and last expert witness, a compensation specialist, is expected to conclude on Monday, with Mr. Ovitz scheduled to take the stand next.
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Distrust Cited as Basis for Ovitz's Firing - Los Angeles Times (10/22/2004)
The Los Angeles Times shares highlights from Thursday's testimony in the Ovitz lawsuit.
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Disney Directors on Trial for a Payout - New York Times (10/21/2004)
The New York Times offers highlights from the first day of testimony in the lawsuit regarding the payout to Michael Ovitz.
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Law prof testifies Disney didn't have to pay severance - (10/21/2004)
In the lawsuit regarding Michael Ovitz' severance, John Donohue, a Yale University employment law specialist claimed Ovitz's conduct could qualify as "gross negligence" under California law.
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Witness Faults Disney Board in Ovitz Case - Los Angeles Times (10/21/2004)
The Los Angeles Times discusses Wednesday's testimony in the Ovitz's severance lawsuit.
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Disney May Have Violated Bylaws - The Associated Press (10/20/2004)
The Associated Press reports a witness in the ongoing lawsuit regarding Ovitz's severage package, testified Disney's board of directors ignored typical practices of companies incorporated in Delaware.
It's a Small World After All: Eisner, Ovitz United in Court - Los Angeles Times (10/20/2004)
The Los Angeles Times reports Disney's CEO Michael Eisner and his former No. 2, Michael Ovitz, now bitter foes, are on the same side in a shareholder suit
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Disney shareholders to get their day in court - Agence France Presse (10/19/2004)
The Agence France Presse reports the Disney shareholders lawsuit regarding Ovitz severance will go to trial in Delaware.
Investor Suit at Disney Puts Exits in a Spotlight - New York Times (10/18/2004)
The New York Times offers highlights from the ongoing lawsuit regardng the $140 million severance package awarded to Michael Ovitz when he left his position as president after only 14 months.
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Ovitz's Hollywood friends sought keys to Magic Kingdom - Orlando Sentinel (10/12/2004)
The Orlando Sentinel reports various requests and favors sought by then Disney Co. President Michael Ovitz to Disney CEO Michael Eisner.
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New Documents Could Delay Ovitz Trial - CBS MarketWatch (10/8/2004)
CBS MarketWatch reports the trial focusing on the severance package awarded to former Disney president Michael Ovitz may be delayed as some new documents have surfaced.
Airing Disney's dirty laundry - Indy Star (10/4/2004)
The Indy Star briefly addresses the ongoing lawsuit filed by shareholders over the hiring and severance of Disney's ex-president Michael Ovitz.
Ovitz Case Haunts Disney Board - Los Angeles Times (9/20/2004)
The Los Angeles Times reports the documents unsealed in the Michael Ovitz lawsuit show Eisner didn't consult the full board when he decided to hire the highpowered Hollywood agent. These reports put further pressure on Disney's board to illustrate their independence now as they select a successor to Eisner when he steps down in 06.
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Ovitz Wins Partial Judgement in Disney suit - Associated Press (9/13/2004)
The Associated Press reports Michael Ovitz will only have to defend part of a shareholder suit over his $140 million severance package.
Attorney argues ex-Disney exec should keep pay - Orange County Register (9/9/2004)
The Orange County Register reports a lawsuit from investors seeks repayment, alleges that Ovitz's $140 million severance package was waste of assets.
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Court Hears Ovitz Bid to Escape Suit - Associated Press (9/8/2004)
The Associated Press reports the Delaware courts heard arguments to remove Michael Ovitz from the list of defendants in a shareholder lawsuit over his $140 million severance package.
The strange hiring and firing of Michael Ovitz - (8/17/2004)
Kim Masters author of Keys to the Kingdom; The Rise of Eisner and the Fall of Everybody Else pens this Slate view of the behind the scenes events that lead to Michael Ovitz's hiring and firing as Disney prez.Link spotted on SaveDisney.com
Investors Seek Review of Ovitz's Disney Pay - Los Angeles Times (8/6/2004)
The Los Angeles Times reports investors continue to charge the former Disney Company president Michael Ovitz. A trial date regarding this matter has been set for Oct 18.
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Ex-Disney board members to give new depositions in Ovitz - Associated Press (6/2/2004)
The June 2nd Associated Press reports Stanley Gold and Roy E. Disney have been ordered to give new depositions in a Disney shareholder lawsuit focusing on the short tenure of former Disney president Michael Ovitz as a result of inconsistencies in their pre-resignation testimony and post-resignation criticisms.
Ex-Disney President Ovitz Testifies He Should Keep Severance - Bloomberg News (5/14/2004)
The May 14th Bloomberg News reports former Disney Company President Michael Ovitz testified he should be able to keep his $140 million severance during a lawsuit filed by shareholders to recover the money.
From Walt Disney's Chief, Reflective Letter Full of Regret - New York Times (5/10/2004)
The May 10th New York Times discusses the information released with the unsealing of documents in a shareholder lawsuit against Disney over the hiring of Michael Ovitz.
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Trial Set for Disney Investors' Lawsuit - Los Angeles Times (4/21/2004)
The Los Angeles Times reports a Disney Company investors' lawsuit regarding the severance package given to Michael Ovitz will go to trial October 18th.
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Judge Bars Testimony in Suit Against Disney - (3/12/2004)
A Delaware Judge ruled that a corporate governance expert, Deborah A. DeMott could not testify that Disney directors did not properly oversee the hiring and firing of former Disney President Michael Ovitz. Mr. Ovitz received a $140 million severance package, after his 15 month stay with Disney, which sparked controversy.
As spender, Ovitz was $6-million Man - Los Angeles Times (3/1/2004)
The February 28th Los Angeles Times takes a look at Disney's costs associated with the hiring and termination of Michael Ovitz.
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Eisner's 199 Letter Confronting Ovitz - (2/26/2004)
A judge unsealed various documents relating to the Disney Company's relationship with Michael Ovitz. Among the documents was a confidential, seven page letter from Michael Eisner to Ovitz. Letter is displayed as PDF in sidebar link
Judge unseals records in Disney Ovitz - Reuters (2/25/2004)
The February 24th Reuters reports documents have been unsealed relating to an ongoing suit accusing the Disney board of negligence in the hiring and severance package of Michael Ovitz. Disney lawyers had been seeking to keep the documents sealed until Mar 2.
Attention turns to Disney board - Orlando Sentinel (11/12/2003)
The November 12th Orlando Sentinel briefly discusses the ongoing lawsuit filed by Disney shareholders over the Disney board's decisions regarding the hiring and dismissal of Michael Ovitz.
Case Could Redefine Board Members' Liability - New York Times (6/16/2003)
The June 14th New York Times examines the lawsuit filed by Disney shareholders over the hiring and departure of Michael Ovitz.
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Disney Investors' Suit on Ovitz Can Proceed - Los Angeles Times (6/3/2003)
The June 3rd Los Angeles Times reports Disney shareholders suit against company executives over the $140 million severance package given to Michael Ovitz has been allowed to proceed.
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Weiss Wins Favorable Court Ruling in Challenging Ovitz's $140 Million Payout - (2/7/2003)
Plaintiffs claim that the Disney board was derelict in its responsibilities when it approved CEO Michael Eisner's hiring of Mr. Ovitz in 1995 and then permitted Mr. Ovitz to leave The Walt Disney Corporation only 14 months later with his full severance package in hand.
Ovitz Issues an Apology for Comment About 'Gay Mafia' - Los Angeles Times (7/3/2002)
According to the July 3rd Los Angeles Times, former Disney president Michael Ovitz has issued an apology for comments made in a recent Vanity Fair article.
Ovitz: I'm 'a Victim' - Los Angeles Times (7/2/2002)
The July 2nd Los Angeles Times examines the downfall of Hollywood mogul, Michael Ovitz who labels himself a victim in a recent Vanity Fair interview.
Ex Disney Pres to Sell Troubled Talent Firm - Orlando Sentinel (5/7/2002)
The May 7th Orlando Sentinel reports Michael Ovitz, former president of the Disney Company will sell Artists Management Group, his talent-management company.
Lawsuit Claims Disney Negligence - Los Angeles Times (1/9/2002)
The January 9th Los Angeles Times reports Disney Company shareholders have refiled their suit claiming the Disney board was negligent by not consulting an expert before approving Ovitz's employment contract and that Eisner allowed Ovitz to collect a severance package whose size was not in the best interest of the company.
Disney shareholders renew suit over Ovitz payout - Reuters (1/8/2002)
A January 7th Reuters news item reports Disney shareholders have refiled their suit charging the payout to Ovitz back in 1996 was not in the interest of shareholders and wasted company money.
Shareholders Can Sue Disney - Los Angeles Times (2/10/2000)
The Los Angeles Times in an article dated February 10 reports a Delaware court has ruled stockholders can sue Disney officials over the Michael Ovitz severance package.