A group of self-described “pro-democracy” organizations sent a letter to Disney chief Bob Iger on behalf of two shareholders demanding details about ABC’s decision to suspend Jimmy Kimmel amid pressure from the Trump administration.
The letter on behalf of the Disney shareholders — the American Federation of Teachers, which is affiliated with the AFL-CIO, and Reporters Without Borders — requested the production of internal Disney documents and communications related to the decision to take Kimmel off the air for a week. The groups invoked shareholder rights under Delaware law to obtain information from corporations; such requests are granted only in cases of a breach of fiduciary duty and not for routine management decisions.
The groups contend Kimmel’s suspension is a potential violation of Disney’s obligations to shareholders. The letter, dated Sept. 24, says they are seeking “answers about whether Disney was involved in any wrongdoing in relation to the Kimmel suspension. The sudden disruption of a major late-night show, followed by its return, has sparked concerns about whether Disney violated its fiduciary duties to its shareholders by capitulating to government pressure.”
“There is a credible basis to suspect that the [Disney] Board and executives may have breached their fiduciary duties of loyalty, care, and good faith by placing improper political or affiliate considerations above the best interests of the Company and its stockholders,” the letter alleged. The groups said they reserved the right to file a lawsuit “in the event that members of the Board or Disney executives did not properly discharge their fiduciary duties.”
Reps for Disney did not immediately respond to a request for comment. A copy of the letter from the groups is available at this link.
The groups claimed that “Disney’s stock suffered significant declines” in response to the Kimmel suspension. Shares of Disney dropped 3.3% from Sept. 18-23 but closed up 1.05% on Wednesday.
ABC on Sept. 17 said “Jimmy Kimmel Live!” would be suspended “indefinitely,” following remarks the host said on his show two days prior about “the MAGA gang” trying to score political points over Charlie Kirk’s murder. Disney brought Kimmel back on Tuesday night, which scored as its highest-rated episode ever. That’s despite “Jimmy Kimmel Live!” being blacked out on some 70 ABC affiliates operated by Sinclair and Nexstar, representing about 23% of U.S. TV households. The station groups preempted Kimmel after FCC chairman Brendan Carr threatened to pursue “news distortion” complaints against ABC stations unless Kimmel were fired. As noted in the letter, Nexstar’s proposed $6.2 billion acquisition of Tegna, which requires FCC approval.
In the letter to Iger, the groups cited Trump’s social-media post railing against ABC and Kimmel, with the president writing, “I think we’re going to test ABC on this. Let’s see how we do. Last time I went after them, they gave me $16 Million Dollars.” Trump’s threat makes the groups’ concerns “even more timely,” they wrote in the letter.
Among the documents requested by the groups are those related to “the actual or potential financial, contractual, or reputational impact on the Company arising from any such decision or threat by Nexstar or Sinclair to preempt the airing of ‘Jimmy Kimmel Live!’”
“Despite Jimmy Kimmel’s return to late night, this affair is far from over. The FCC continues to threaten media organizations over content it doesn’t like and, in the case of Kimmel, dozens of affiliates are still refusing to air his show,” Clayton Weimers, executive director of Reporters Without Borders USA, said in a statement. “The public needs to know how government actions toward the media unfolded in this instance, so we can stop this reckless assault on the First Amendment from going any further.”
Randi Weingarten, president of the American Federation of Teachers, added: “Disney shareholders deserve the truth about exactly what went down inside the company after Brendan Carr’s threat to punish ABC unless action was taken against Jimmy Kimmel. The Disney board has a legal responsibility to act in the best interests of its shareholders — and we are seeking answers to discover if that bond was broken to kowtow to the Trump administration.”
Lawyers who signed the letter were Christopher J. Clark of Clark Smith Villazor LLP, Roberta A. Kaplan of Kaplan Martin LLP, and Norm Eisen of the Democracy Defenders Fund.
“The fallout from suspending ‘Jimmy Kimmel Live!’ sparked criticism as an attack on free speech, triggered boycotts and union support for Mr. Kimmel, and caused Disney’s stock to plummet amid fears of brand damage and concerns that Disney was complicit in succumbing to the government overreach and media censorship,” the letter said. “And the negative repercussions on Disney and its stockholders remain given that, following the announcement that the show would be returning to the air, Donald Trump issued a new threat on his social media platform, Truth Social, stating on September 23, 2025, that ‘I think we’re going to test ABC out on this. Let’s see how we do.’”
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