Disney is supposed to be in the business of making magic—but not with its numbers.
A former senior financial analyst for the Walt Disney Company has filed multiple claims with the Securities and Exchange Commission about the company’s accounting practices, according to a report by MarketWatch.
Sandra Kuba claims that employees at Disney falsely inflated revenue for years. Some of the alleged methods included pretending that complimentary golf games or other free or discounted promotional services and products were paid in full. Software flaws supposedly allowed these and other misstatements to be entered. Disney, in a statement to Fortune, denied the claims had any merit.
Here’s what we know so far.Little transactions, big numbers
Public companies live and die among investors by their revenues and profits. That’s why regulators require full and accurate financial statements, so investors can see a company’s performance.
Kuba claims that Disney manipulated a lot of small transactions, apparently at the theme parks, misrepresenting their actual value and, when totaled, significantly increasing the company’s revenues.She says she told management
In Disney’s 2009 fiscal year, the parks and resorts business unit showed $10.7 billion in revenue. Kuba said the number could have been inflated by upwards of $6 billion.
She claimed to have repeatedly reported the problems to Disney management. Kuba contacted the SEC in 2017 and was fired a month after.
“If [Kuba’s concerns] really had been brought to [a board] level, you would think that if there was anything there they would have dealt with it,” said James Angel, a professor of finance at Georgetown University’s McDonough School of Business.Disney says Kuba was fired for cause
A company spokesperson sent a statement to Fortune that said Kuba was “fired for cause” in 2017, had “persistently made patently false claims for over two years,” and that the claims had been “thoroughly investigated and found to be utterly baseless.” In addition, it also said that MarketWatch “has been aware of the facts for months.”Investors aren’t too worried
Shares were down only 0.12%, suggesting that investors are not terribly alarmed. Some experts that spoke with Fortune expressed doubts about the larger claims. “This is the first report that I’ve heard of,” said Joseph Bonner, a senior analyst for technology, medi
Taylor Swift has unveiled her fashion collaboration with designer Stella McCartney, which goes on sale Friday at a New York City pop-up store, the same day her new album, Lover, debuts.
News of the upcoming Stella x Taylor Swift was announced in June, and Swift’s passionate fans have been abuzz on social media about how the collection ties into the Grammy winner’s latest album.
Adding to the much-hyped rollout: The entire Stella x Taylor Swift collection will only be available at The Lover Experience Taylor Swift Pop Up Shop, sponsored by Capital One, open Aug. 23 to Aug. 25 in New York City. (A specific location hasn’t been announced.) A similar launch accompanied Swift’s Reputation album release, in conjunction with AT&T, which featured photo ops with the throne from her “Look What You Made Me Do” music video, all of Swift’s costumes from the video, and an extended merch collection.
“It’s been SO much fun to work/dream up cute stuff with my friend @stellamccartney to create a line inspired by my new album Lover,” Swift wrote in her Instagram announcement today. “Can’t wait to show you what we’ve been working on and tell you more about the pop up shop at the @YouTube Live event this Thursday at 5p ET!”
Two Stella x Taylor Swift luxury items will also be available at Stella McCartney stores in New York and London, plus on StellaMcCartney.com, which teases the upcoming release, announcing: #StellaxTaylorSwift is almost here…Candy-colored fashion
The Stella x Taylor Swift fashions are every bit as candy-colored as you’d expect from Swift’s new era, and made from the sustainable materials synonymous with McCartney’s brand.
The Lover merchandise includes t-shirts, sweatshirts, jackets, bags, and a reusable water bottle. Most of the items are made from sustainable organic cotton, according to a McCartney press release, which didn’t detail prices, but described the merchandise as “affordable.” There are also two luxury items, a bomber jacket and handbag, which the designer’s office said cost $1,995 and $795, respectively.
The pastel-heavy collection features tie-dye, graffiti motifs, and winged hearts, evoking souvenirs sold on seaside boardwalks. One sweatshirt features a unicorn galloping through a glittering mountain valley, with the words “summer’s a knife” written across the top of the photo. (Possibly a lyric from “Cruel Summer,” the second track on Lover, which fans—given a p