The Walt Disney Co. has materially overstated its revenue for years, according to a longtime accountant for the company who says she has filed a series of whistleblower documents with the Securities and Exchange Commission, MarketWatch reports.
“Sandra Kuba, formerly a senior financial analyst in Disney’s revenue-operations department who worked for the company for 18 years, alleges that employees working in the parks-and-resorts business segment systematically overstated revenue by billions of dollars by exploiting weaknesses in the company’s accounting software,” MarketWatch reports. “Kuba said she has met with officials from the SEC on several occasions to discuss the allegations.”
A spokeswoman for the SEC reportedly declined to comment, while a spokesperson for Disney said the company had reviewed the claims and found that they were “utterly without merit.”
“Kuba’s whistleblower filings, which have been reviewed by MarketWatch, outline several ways employees allegedly boosted revenue, including recording fictitious revenue for complimentary golf rounds or for free guest promotions,” MarketWatch reports. “Another alleged action Kuba described in her SEC filing involved recording revenue for $500 gift cards at their face value even when guests paid a discounted rate of $395.”