Genting Malaysia Files Suit Against 21st Century Fox, Disney, Others -- Update
28 November 2018 - 12:20PM
Dow Jones News
By Yantoultra Ngui
KUALA LUMPUR, Malaysia--Malaysian casino operator Genting
Malaysia Bhd. (4715.KU) said it filed legal proceedings in the U.S.
against Fox Entertainment Group, Twentieth Century Fox Film Corp.,
21st Century Fox Inc. (FOXA) and The Walt Disney Co. (DIS).
Genting Malaysia said the legal proceedings are in response to a
notice issued by Fox in which it terminated a memorandum of
agreement from 2013 and claimed about $46.2 million in accelerated
payments.
The agreement entails the granting of Genting Malaysia the
license to build a Twentieth Century Fox World theme park at its
casino resort situated outside of Kuala Lumpur.
Genting Malaysia said it denied that Fox and the other parties
had grounds to terminate the agreement. It said it pursued a cause
of action for breach of contract and breach of the implied covenant
of good faith and fair dealing, among others.
It has also pursued a cause of action against Disney and 21st
Century Fox for inducing a breach of contract and for interference
the with contract, according to the filing.
Genting Malaysia said it intends to fully enforce its rights
under the agreement and claim for the cost of its investments and
consequential and punitive damages that in total will exceed $1
billion.
It added that the litigation isn't expected to impact Genting
Malaysia's current business operations.
"This lawsuit is entirely without merit," a Twentieth Century
Fox Film spokesman said on Wednesday. "As the complaint itself
makes clear, Genting has been failing to meet the agreed-on
deadlines for several years, long before the 21st Century
Fox-Disney agreement."
The spokesman added that the allegation that Disney, rather than
Twentieth Century Fox Film, finally decided to declare a default
was simply made up.
"We look forward to presenting all the facts in the appropriate
forum," the spokesman said.
Meanwhile, a Disney spokesman said "the claims made against
Disney in this matter are utterly without merit."
Write to Yantoultra Ngui at yantoultra.ngui@wsj.com
(END) Dow Jones Newswires
November 27, 2018 20:05 ET (01:05 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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