Disney Files Breach of Contract Lawsuit Against Former Distribution Head Justin Connolly and YouTube

The House of Mouse claims that Connolly's knowledge of distrubtion negotiations would cause "irreparable injury."

Earlier this week, we reported that Disney distribution head Justin Connolly had suddenly exited The Walt Disney Company. The media giant is now taking legal action against the executive for breach of contract as he attempts to head to YouTube.

What’s Happening:

Deadline is reporting that The Walt Disney Company has filed a breach of contract lawsuit against former Disney executive Justin Connolly and YouTube.
Last week, Connolly abruptly left his position as President of Platform Distribution with all signs pointing towards him taking a new position at YouTube.
In response, Disney filed a breach of contract suit with the LA Superior Court on Wednesday, May 21st to prevent him from taking the position with the Google-owned company.
Set to take a newly created gig as YouTube’s global head of media and sports, Disney is fighting back as Connolly renewed his contract with the media giant just last year.
Connolly’s new contract was set to run from January 1, 2025 through December 31, 2027.
In the filing, Disney claims that Connolly exited the company at an imperative time for Disney and YouTube’s current licensing negotiations, which Connolly was a key player in.
Disney claims that, due to Connolly’s knowledge of proprietary financial information, other distribution deals, and negotiation strategies, that his employment with YouTube would compromise those negotiations and put Disney at a disadvantage.
The suit states “As a direct and proximate result of Connolly’s breach of the Employment Agreement, Disney has been harmed and will continue to be harmed. Connolly threatens to, and unless restrained, will continue to breach the Employment Agreement, to Disney and its affiliates’ great and irreparable injury, for which damages would not afford adequate relief, in that they would not completely compensate for Disney’s injuries."
Starting his career with Disney in 2003 as Director of ESPN Strategy and Operations, Connolly worked through a number of positions at the sports network before moving up to The Walt Disney Company's executive branch.
Connolly was named President of Platform Distribution for Disney in 2019, where he reported to Co-Chairmen of Entertainment Alan Bergman and Dana Walden and ESPN Chairman Jimmy Pitaro.
In his role, he oversaw all third-party media sales for distribution and affiliate-related business operations for all of Disney’s direct-to-consumer services and linear media networks.
He was also in charge of content sales agreements.
As of now, Sean Breen (Executive Vice President of Platform Distribution) and Jimmy Zasowki (Executive Vice President of Platform Distribution Strategy) have taken on Connolly’s responsibilities within the company.

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