MIAMI — A federal judge has dismissed the Walt Disney Co.'s lawsuit against Florida Gov. Ron DeSantis. Disney sued after DeSantis and state lawmakers removed the company's self-governing status in 2023.

Backed by Republican lawmakers, DeSantis dissolved a special district near Orlando that for more than 50 years had governed Walt Disney World. He acted after Disney's CEO opposed a law limiting how sexual orientation and gender identity can be discussed in schools. The Parental Rights in Education Act was labeled "Don't Say Gay" by opponents.

At DeSantis' request, Florida's Republican-controlled legislature created a new special district, the Central Florida Tourism Oversight District, controlled by the Republican governor's appointees. Disney sued in federal court, saying DeSantis was retaliating against the company, punishing it for exercising its First Amendment right to freedom of speech. Disney also canceled plans for a $1 billion campus in Florida.

In a 17-page order, U.S. District Judge Allen Winsor dismissed the case, saying Disney lacks standing to sue the governor. The judge also said that while Disney could sue the new DeSantis-appointed board, it hadn't shown evidence that actions by the new board had harmed the company. In addition, Winsor said the law prohibits plaintiffs from bringing a free speech challenge to constitutionally enacted laws.

A DeSantis spokesman hailed the decision, saying, "the Corporate Kingdom is over. The days of Disney controlling its own government and being placed above the law are long gone. ... Disney is still just one of many corporations in the state, and they do not have a right to their own special government."

Disney says it will "press forward with its case." In a statement after the ruling, a company spokesperson said, "If left unchallenged, this would set a dangerous precedent and give license to states to weaponize their official powers to punish the expression of political viewpoints they disagree with."

Disney and the Central Florida Tourism Oversight District's board are also embroiled in lawsuits in state court.

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Transcript

ARI SHAPIRO, HOST:

A federal judge has dismissed The Walt Disney Company's lawsuit against Florida Governor Ron DeSantis. Disney sued after DeSantis and state lawmakers removed the company's self-governing status last year. DeSantis took that action after Disney's CEO opposed a law limiting how sexual orientation and gender identity can be discussed in Florida schools. NPR's Greg Allen is following this from Miami. Hey, Greg.

GREG ALLEN, BYLINE: Hi, Ari.

SHAPIRO: There have been a lot of twists and turns to this case. Explain how we got to today.

ALLEN: Right. Well, last year, backed by Republican lawmakers, governor DeSantis dissolved a special district near Orlando that, for more than 50 years, had governed Walt Disney World. It was a special arrangement that was set up in the '60s by Florida at Disney's request. That district had all the powers of a local government, with its own water, sewer and waste facilities - also had its own firefighters, among other things.

In 2022, Governor DeSantis became angry when Disney's CEO said he'd work to overturn the controversial law. And that, of course, was The Parental Rights In Education Act, which limited how sexual orientation and gender identity could be discussed in the schools. That - it drew national attention, that law, and it was labeled Don't Say Gay by opponents.

DeSantis became angry at Disney's response when they talked about overturning it. They - he called it a woke company, and he struck back against Disney. At his request, Florida's Republican-controlled legislature created a new special district - the Central Florida Tourism Oversight District, it's called - and it's controlled by the governor's appointees. Disney then, of course, went to federal court saying DeSantis was retaliating against the company, punishing it for exercising its First Amendment right to freedom of speech, and it sued.

SHAPIRO: OK, so what did the judge say in his dismissal today?

ALLEN: Well today, we got a 17-page order from the judge, and he threw out Disney's lawsuit and sided with the state of Florida. U.S. District Judge Allen Winsor said that Disney lacked standing to sue the governor and another state official who was named in the case. The judge said Disney could sue the new DeSantis-appointed board, but it hadn't shown evidence that the actions by the new board had actually harmed the company. In addition, the judge said if a law is constitutional, plaintiffs can't argue that by enforcing it, their - it's a violation of their freedom of speech.

SHAPIRO: Has there been any response from Disney at this point?

ALLEN: Disney says it will "press forward" with its case - that's in quotes. In a statement, the company says if the ruling is left unchallenged, it would, quote, "set a dangerous precedent and give license to states to weaponize their official powers to punish the expression of political viewpoints they disagree with." If Disney appeals, it will likely go to the 11th Circuit Court of Appeals in Atlanta. And Judge Winsor, in his order, had numerous citations of cases heard by that appeals court, which suggests that that court may look favorably on his decision.

SHAPIRO: And what about from Governor DeSantis? He has been fighting with Disney for years.

ALLEN: Right. We haven't heard from the governor personally yet, but his spokesman said in a statement, quote, "the days of Disney controlling its own government and being placed above the law are long gone. Disney," he said, "is still just one of many corporations in the state, and they do not have the right to their own special government."

But this is clearly not the end of the dispute. Disney and the Central Florida Tourism Oversight District Board are also embroiled in dueling lawsuits in state court. The DeSantis-appointed board is challenging a land use agreement that Disney signed with its old board before the new one was seated. That agreement limits how much authority the new board has over Disney and how they operate and expand their parks. So the bad blood between Disney and DeSantis is likely to continue for at least the next three years that he remains in office as Florida's governor.

SHAPIRO: That's NPR's Greg Allen in Miami. Thank you.

ALLEN: You're welcome.

(SOUNDBITE OF MINUTEMEN'S "COHESION") Transcript provided by NPR, Copyright NPR.

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