Genting is now seeking more than US$1 billion in damages, according to a complaint filed in federal court in Los Angeles.
Genting Malaysia Berhad will have to go it alone or find a new partner for a theme park at its casino resort outside Kuala Lumpur after 21st Century Fox and its soon-to-be new owner, the Walt Disney Co., scrapped an agreement for a Fox World theme park at the site.
Genting is now seeking more than US$1 billion in damages, according to a complaint filed in federal court in Los Angeles.
However, Disney and Fox have described Genting Malaysia’s claims against them as “without merit”, according to a Reuters report.
According to the Genting complaint, Fox Entertainment Group, under pressure from Disney, which is acquiring the former for US$71.3 billion, breached a 2013 contract to licence its intellectual property for the theme park.
Genting claimed that Disney wanted to back out of the deal because partnering with a gaming company did not fit its “family-friendly” brand strategy.
Fox has rejected that allegation. “The allegation that Disney, rather than Fox, decided to declare a default is simply made up,” Reuters reported, citing a spokesman.
The theme park standoff has added to a tough time for Genting Malaysia. It follows the Malaysian government’s hike of gaming duties by 10% to 35% on revenue collected.