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.

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.

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

The FTSE 100 is set for a makeover with an influx of new tech stocks
UK stockmarkets

The FTSE 100 is set for a makeover with an influx of new tech stocks

The FTSE 100 – the dullest index in the world – is about to reinvent itself as a host of new firms list on the market. The change is long overdue, say…
24 Jan 2021
Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021