Whistleblower claims Disney inflated revenues for years

Disney

A Disney whistleblower is telling the Securities and Exchange Commission that the company has been inflating revenues at its parks and resorts division for years, wadding income by as much as $6 billion in one year alone, according to a new report in MarketWatch.

Sandra Kuba, a former senior financial analyst for Walt Disney Co., said employees continuously took advantage of “weaknesses” in the company’s software to inflate revenue, including by double-reporting $500 gift cards purchased by guests, and recording gift cards that were discounted or given away for free at full value.

She said that and other mischief added up to billions of overreported dollars, estimating that the 2008-09 revenues report could have been overstated by as much as $6 billion. The parks and resorts division claimed total revenues of $10.6 billion in 2009, the report said.

Kuba, who worked for Disney for 18 years, said she began trying to report the irregularities in 2013, but was unheard. She finally went to the SEC in August 2017, and was fired the following month. She’s made two SEC whistleblower filings since and, in October 2017, filed an OSHA retaliation complaint against the company — which she later dropped.

Disney spokesman David Jefferson called Kuba’s claims “utterly baseless.” “This former employee, who was fired for cause, has continuously made many false claims for over two years,” Jefferson said in an email to The Post. “The claims she made to the company were thoroughly investigated and found to be utterly baseless.”


mm

Terry McKinney

Terry McKinney is the writer who is in charge of the Business news section at Instanews247. He is a business grad, who has a knack for trend analysis and change forecasting. His unique skills set him apart from any other business writers in the business, and solidify him as an asset to our team. Business news makes a deep impact on transmitting all the Wall Street action going down at top business houses, by making the details which would otherwise be unavailable, available to readers – and at Instanews247, we have Terry to thank for it!
Close