Disney Loses $319 Million Appeal in 'Millionaire' Game Show Lawsuit: Disney Hid Profits from Creators Celador International

A federal appeals court decided on Monday (Dec. 3) to uphold a verdict decided by a jury in 2010 where Disney lost a whopping $319 million lawsuit filed by the U.K.-based entertainment company Celador International. Although Walt Disney Company tried to overturn the verdict, a three-judge panel of the 9th U.S. Circuit Court of Appeals found no issues with the original judge's ruling.  Celador International filed the lawsuit in 2010 claiming that Disney hid profits and improperly deducted several different fees and expenses related to the hit game show "Who Wants to Be a Millionaire." The 2012 federal appeals court evidently agreed that Disney should now hand over a massive $319 million to cover such unpaid earnings.

Not only did the court uphold the $319 million verdict against Disney on Monday, but it denied the company's request for a new trial.

Celador International sued Disney in 2004, and proved victorious in a lengthy 2010 trial that featured testimony from several top Disney executives. Along with the hidden profits, fees, and expenses, Celador claimed that Disney's ABC-affiliate failed to include their own profits when calculating the funds owed to Celador in regards to "Who Wants to be a Millionaire." Apparently a contract agreed upon by the two entertainment conglomerates was simply unclear and imprecise... therefore the court had the legal right to interpret the case whichever way they please - and a judge ultimately sided with Celador.

In the original 2010 verdict, the jury found that Disney owed Celador $269.2 million and a judge later tacked on a $50 million interest fee. The 2012 appeals court recently determined that the verdict was not "grossly excessive or monstrous" and that it was not based on speculation or guesswork.

Celador Chairman Paul Smith released in a statement that he was pleased that justice has been done. According to the company's lead litigator Roman Silberfeld - "What the court of appeal did today validates what a careful and thoughtful trial judge and a quite attentive jury did two years ago. We're pleased for the client."

Meanwhile, Disney is rather upset and troubled that an appeal was not granted in the case - "We are extremely disappointed with the decision, as ABC and Buena Vista Television continue to believe that they fully adhered to the Millionaire agreement," a Disney rep said.

Thanks to the hit show "Who Wants to Be a Millionaire" which hopes to give money to its winning contestants, Disney must now fork over $319 million to Celador International.