Disney Shareholders Appeal Ovitz Ruling

Walt Disney Co. shareholders who sought to hold the company’s board responsible for approving a $130-million payday for former President Michael Ovitz have appealed a Delaware court’s decision that affirmed the severance package and shielded directors from liability.

In the appeal, filed Monday in Delaware, attorneys for the shareholders claim that a ruling by Delaware Chancery Court Judge William Chandler III was flawed on procedural and evidentiary grounds and should be overturned.

Ovitz’s attorney, Michael H. Epstein, said Wednesday that the appeal presented “very weak arguments.” Ovitz left Disney in 1996 after 14 months on the job.