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A federal judge in Florida dismissed Disney’s lawsuit against Governor Ron DeSantis and other state officials.

The legal battle centered around the state legislature's decision to alter the governing structure of the Reedy Creek Improvement District, where Disney is a major landowner.

 The dismissal dealt a significant blow to Disney in its ongoing feud with Governor DeSantis.

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Disney’s Lawsuit

The lawsuit, filed in April, alleged that the changes to the Reedy Creek Improvement District were a form of retaliation by the state for Disney's criticism of the Parental Rights in Education Act, commonly known as the "Don't Say Gay" bill.

The Florida Legislature voted to dissolve the existing governing board of the district and replaced it with a DeSantis-appointed Central Florida Tourism Oversight District (CFTOD).

This move led to the voiding of a contract made before the establishment of CFTOD, according to the lawsuit.

Governor DeSantis' Stance

Governor DeSantis, along with J. Alex Kelly, the secretary of Florida's Department of Commerce, argued a lack of standing and invoked 11th Amendment immunity in the case. 

The Central Florida Tourism Oversight District also contended a lack of merit in the lawsuit.

DeSantis' press secretary, Jeremy Redfern, welcomed the court's decision. He said that it signaled the end of Disney's control over its own government and emphasized that the company should not be considered above the law.

Federal Judge's Ruling

U.S. District Judge Allen Winsor, appointed in 2018, delivered the decisive ruling, stating that Disney had not demonstrated standing to sue the governor or secretary.

He emphasized that a law stripping Disney of control over the municipal district, including Disney World, was constitutional even if it targeted free speech.

Judge Winsor argued that Disney failed to show a direct link between its alleged injury – operating under a board it can't control – and DeSantis' control.

Winsor added, "That injury would exist whether or not the governor controlled the board."

He further clarified that the analysis might have been different if the governor had not made any appointments yet. However, given the current circumstances, Disney would still be operating under the CFTOD board, irrespective of future appointments.

Disney's Response

The judge dismissed the lawsuit without prejudice, leaving open the possibility for it to be brought again with proper standing. 

Disney sees the case as having serious implications for the rule of law. 

A Disney spokesperson stated, "If left unchallenged, this would set a dangerous precedent and give license to states to weaponize their official powers to punish the expression of political viewpoints they disagree with. We are determined to press forward with our case."

The court's decision not only impacts Disney's influence over the Reedy Creek Improvement District but also raises questions about the balance of power between corporations and state governance.