Avesco falls after Disney appeals ruling
Corporate services provider Avesco saw its shares slide after the Walt Disney company said it would keep fighting a case over hidden profits.
Corporate services provider Avesco saw its shares slide after the Walt Disney company said it would keep fighting a case over hidden profits.
Avesco is waiting to see if it will finally profit from a multi-million pound case again Disney, brought by British production company Celador.
Celador, the company behind 'Who Wants to Be a Millionaire?', has been awarded $319m by US Federal Courts over claims that Disney used creative accounting to hide the success of its show in the US.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Avesco said that if the fine is paid in full, the group's interest in the award - after costs but including pre-judgement interest - is estimated at around $60m.
In December a court upheld the ruling for the second time, however, Disney has now filed a petition to seek leave for a re-hearing 'en banc' with the Ninth Circuit court.
The filing of the petition is the next stage in the appeal process and stays the enforcement of the judgement until the appeal process is complete.
Celador has now been fighting the case since 2004.
Avesco shares were down 5% at 1415.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Saba Capital and Boaz Weinstein respond to investment trusts
As investment trust managers and industry experts accuse Saba of self-motivated opportunism, the hedge fund responds to specific "misleading claims" and sets out its stall
By Dan McEvoy Published
-
How to find top-quality companies with growing dividends
Ian Mortimer, portfolio manager of Guinness Global Equity Income Fund, shares where he would put his money for sustainable and growing dividends
By Ian Mortimer Published