Asian casino operator, Genting Malaysia Berhad, has reportedly filed a lawsuit in California against The Walt Disney Company and its new Twenty First Century Fox Incorporated subsidiary seeking at least $1 billion in damages for an alleged breach of contract.
Sweeping California action:
According to a report from the Associated Press news service, the legal action from the Kuala Lumpur-listed firm was filed on Monday with the United States District Court for the Central District of California and also names Twenty First Century Fox Incorporated subordinates Fox Entertainment Group LLC, Twentieth Century Fox Film Corporation and FoxNext LLC as defendants.
Malaysian theme park abandoned:
Citing an official Tuesday declaration from Genting Malaysia Berhad, the news service explained that the suit was lodged after Twentieth Century Fox Licensing and Merchandising, which is a division of Fox Entertainment Group LLC, decided to pull the plug on a 2013 licensing agreement that was to see the 20th Century Fox World Theme Park constructed at the Malaysian firm’s sprawling Resorts World Genting integrated casino resort.
The Associated Press reported that Genting Malaysia Berhad recently detailed that it had already spent some $180 million on preparing the ground for the coming attraction in the Malaysian state of Pahang and had hoped to open the new development adjacent to the 12,000-acre property’s soon-to-debut Skytropolis indoor theme park sometime early next year.
Cancellation followed acquisition:
The news service reported that The Walt Disney Company, which has long maintained a policy of not partnering with firms involved in gambling, recently acquired Twenty First Century Fox Incorporated via a transaction worth around $71 billion and subsequently instructed its new subordinate to cancel the union with Genting Malaysia Berhad.
Operator eager to ‘fully enforce its rights’:
In its lawsuit, Genting Malaysia Berhad reportedly contends that Fox Entertainment Group LLC had no grounds to terminate the previously agreed partnership while its action moreover alleges that the Los Angeles-headquartered firm had breached ‘the implied covenant of good faith and fair dealing.’
Read a statement from Genting Malaysia Berhad…
“Genting Malaysia Berhad has also pursued cause of action against The Walt Disney Company and Twenty First Century Fox Incorporated for inducing breach of contract and for interference with the contract. Genting Malaysia Berhad intends to fully enforce its rights under the memorandum of agreement [and] claim for the cost of its investments and consequential and punitive damages that in total will exceed $1 billion and such other reliefs to be determined by the court.”