Breaking News: Disney Settles $9.5 Million Compensation to Former Magic Key Pass-Holders

  • Disney will make individual payments to “Magic Key” pass holders.
  • The lawsuit arose when pass holders were unable to visit Disney parks on certain dates.
  • All Magic Key pass holders will benefit from the agreement pending approval.

Disney has agreed to pay settlements to individuals who purchased Magic Key park passes in 2021 after a year and a half of litigation.

Jenale Nielsen filed a class action lawsuit in Dec. 2021 against Disney in the Supreme Court of California in Orange County. She purchased a Dream Key pass for visits to the Disneyland Resort in Anaheim, California.

After purchasing the pass for nearly $1,400, Nielsen discovered that there were blackout dates for over half the days in November 2021, despite the promise of no blackout dates.

Nielsen later found that new tickets were still available for purchase, indicating the parks were not at full capacity, but rather blacked out for pass holders.

The lawsuit suggests that thousands of people may have faced similar issues.

The proposed settlement agreement requires Disney to pay out $9.5 million, amounting to $67.41 per class member. The class includes more than 100,000 individuals.

The individual settlement payment falls short of covering a standard theme park ticket, which starts at just over $80 per day.

David Marcus, a law professor at the University of California, Los Angeles, told CNN that a judge must approve the settlement preliminarily and evaluate its terms.

Await the settlement notice, and impacted individuals will likely receive their payments after several months, according to Marcus.

Disney and Nielsen’s lawyers did not respond to Insider’s comment request outside regular business hours.

Reference

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