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.

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.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

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.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.