Disney Suit Advances

A Delaware judge has ruled that former Walt Disney Co. directors Roy E. Disney and Stanley P. Gold can proceed with a lawsuit alleging company directors conducted a sham search before promoting President Robert Iger to chief executive.

The complaint, filed last month, alleged that directors duped Disney and Gold into not running an alternative slate at the company’s annual meeting in February by misleading investors into believing a thorough search was underway to find a successor to Michael Eisner.

The two men want the court to scrap the 2005 election of directors to force another vote.

In his ruling released Monday, Chief Chancery Judge William B. Chandler denied a request by the company to dismiss the lawsuit, ruling that Gold and Disney adequately stated claims alleging disclosure violations and fraud. Chandler said he would schedule an August trial. Iger assumes the job Oct. 1.

Disney spokeswoman Zenia Mucha noted that Chandler did not rule on the lawsuit’s merits.

“We look forward to proving that there is absolutely no basis to these allegations,” she said.

Gold and Disney said they were pleased with the ruling.