Shareholders Threaten Disney With Lawsuit Over Decision to Suspend Jimmy Kimmel

Lawyers representing labor and media groups said they may sue if Disney does not comply within five days.

A security guard outside the theater where "Jimmy Kimmel Live!" was recorded for broadcast on the day after Disney announced that the show would return to its ABC network lineup following Kimmel’s temporary suspension, in Los Angeles on Sept. 23, 2025. Aude Guerrucci/Reuters

Disney is under pressure from shareholders to disclose how it came to its decision to suspend Jimmy Kimmel’s late-night show in response to public backlash over the host’s comments about the assassination of Charlie Kirk.

In a letter sent to The Walt Disney Company on Sept. 24, some investors asked the parent company of ABC’s “Jimmy Kimmel Live!” to hand over any documents in its possession related to its decision last week to pull Kimmel off the airwaves.

The letter was from lawyers representing the American Federation of Teachers, the AFL-CIO, and Reporters Without Borders, who claim to be company shareholders.

The shareholders are seeking documents on how company executives are expected to make decisions regarding “politically sensitive programming.” They also want the details of the agreements with affiliate networks Nexstar and Sinclair, which continue to suspend the airing of Kimmel’s show, although it is available on their streaming platforms. Nexstar owns 32 ABC stations across the United States. Sinclair owns nearly 40 ABC affiliate stations.

The lawyers said they are prepared to proceed with legal action if Disney does not share the requested information within five business days. Disney is legally registered in Delaware.

The letter’s authors were nonprofit Democracy Defenders Fund founder Norman Eisen, a former aide to Barack Obama; lawyer Roberta Kaplan, who sued President Donald Trump on behalf of E. Jean Carroll; and lawyer Christopher Clark, who has represented Elon Musk and Hunter Biden.

“Pulling Jimmy Kimmel off the air was a mistake: one that betrayed principles of free speech and American democracy,” Eisen, who is acting as legal counsel for the American Federation of Teachers and Reporters Without Borders, said in a statement. “And while it was great to have him back on most ABC affiliates, about 25 percent of them did not carry his return.

“We are seeking answers about all of this, including whether Disney bowed down to illegal government demands in order to facilitate approval of the Nexstar–Tegna merger currently before the FCC.”

On Sept. 22, FFC Chair Brendan Carr said, “Jimmy Kimmel is in the situation that he is in because of his ratings, not because of anything that’s happened at the federal government level.”

Company Revenue

The shareholders also expressed concerns over potential wrongdoing, mismanagement, and fiduciary breaches by the Disney board and its leadership.

“There is a credible basis to suspect that the board and executives may have breached their fiduciary duties of loyalty, care, and good faith by placing improper political or affiliate considerations above” Disney’s and its shareholders’ best interests, they wrote.

The decision led to a market response over the past week, resulting in a $4 billion loss in market value for the company from Sept. 17 to Sept. 23, followed by a rebound of $1.1 billion since then. The past five days have seen a 1.18 percent drop in market value.

According to corporate law in Delaware, where many corporations choose to officially register for legal purposes, shareholders have a statutory right under Section 220 to request “books and records” from corporations for review. Since the law was amended on March 25, “books and records” has been defined as certain formal documents, including minutes from stockholders’ communications and meetings. Access to the communications of company executives is limited.

The Epoch Times has contacted ABC and Disney for comment.

Jimmy Kimmel hosts his late-night show "Jimmy Kimmel Live!" in Los Angeles on Sept. 23, 2025. Randy Holmes/Disney via AP

Broadcasters and ‘Public Interest’

The Sept. 17 decision by ABC to suspend Kimmel came after the head of the Federal Communications Commission (FCC), Brendan Carr, warned that the federal regulator would act against ABC for airing Kimmel’s comments, which Carr said were attempting to mislead the public by insinuating that Kirk’s alleged assassin was a Trump supporter or a conservative. The family of the suspect has since told authorities that the alleged assassin held left-leaning views.

Carr gave a warning to ABC, saying that it, CBS, and NBC, falls under the FCC’s jurisdiction, with special requirements to “operate within the public interest.” He explained that channels such as CNN and Fox News do not have the same requirements.

“Broadcasters are different than any other form of communication,” Carr said.

After this, Nexstar and Sinclair threatened to pull Kimmel’s show, which may have contributed to ABC’s decision to suspend Kimmel.

Back on Air

Disney decided to return Kimmel and his show to the air on Sept. 23. In his opening remarks, he acknowledged the backlash over his comments and said that he never intended to make light of Kirk’s murder. He also criticized the Trump administration for threatening to take his show off the air, calling it “un-American.”

However, a spokesperson for Turning Point USA responded, saying that Kimmel’s comments were insufficient, asserting that there remain false statements that need correcting.

“Not good enough. Jimmy, it’s simple,” Turning Point USA spokesperson Andrew Kolvet wrote on X on Sept. 24. “Here’s what you need to say: ‘I’m sorry for saying the shooter was MAGA. He was not. He was of the left. I apologize to the Kirk family for lying. Please accept my sincere apology. I will do better. I was wrong.’”

Kimmel has hosted a late-night show since 2003.

Jack Phillips and Reuters contributed to this article.