Whistleblower Claims Disney Has Been Significantly Inflating its Revenue
According to a report from MarketWatch, a Walt Disney Company accountant has claimed the company overstated its revenue for years. That accountant ultimately filed a whistleblower report with the Securities and Exchange Commission.
The whistleblower in question was Sandra Kuba, who worked with the company for 18 years in its revenue-operations department. She claims the parks-and-resorts section of Disney overstated revenue by billions in that time period by exploiting vulnerabilities in the company’s accounting software.
According to Kuba, the 2008-2009 annual revenue may have been overstated by as much as $6 billion as a result of this behavior. She went to the SEC with these reports in 2017 after attempting to bring up the issue internally. However, she was ultimately fired from her position about a month after disclosing this information to the authorities.
The SEC has not released any comment on the matter since it became public knowledge. For her part, Kuba says she met with the SEC multiple times, including discussions this summer. A Disney spokesperson said the company reviewed Kuba’s claims already and had found them to be completely meritless.
It remains to be seen whether the SEC will actually take any action as a result of Kuba’s claims, or if those claims are indeed meritless.
If you are aware of any wrongdoing or fraud committed by your company or organization, contact an experienced whistleblower attorney at Kardell Law Group for more information about the best steps for you to take as you get started in your case.