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Disney Denies Whistleblower’s Revenue Accusations

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2019 has been a big year for Disney; releasing and announcing numerous movie and TV series remakes, the impending release of Disney+ as well as the company’s theme parks having a great year. With the good comes the bad and Disney is now dealing with some harsh accusations from a former company accountant. In a recent statement, a former senior financial analyst for Disney, Sandra Kuba, said that employees in the parks division overstated revenue by as much as $6 billion in the years 2008-2009.  Kuba had worked for Disney for over 18 years. She claimed that employees would double count sales from gift cards, once when purchased and once when used.  At times they would even count them as a sale when a complimentary gift card was given to customers who had a complaint about their experience. Whether the errors were done due to negligence or done intentionally these are serious claims that Disney is denying as it performs its internal due diligence.  Disney stock dropped modestly after the statements were made public, but nothing that would send stockholders into a frenzy.  There may be serious sanctions by the Securities and Exchange Commission on the unlikely chance that these irregularities were an attempt at stock manipulation.

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