After a settlement was reached last year, a judge officially finalized the class action lawsuit of Magic Key holders against Disney.
Magic Key Lawsuit Settlement Finalized
According to Orange County Register, U.S. District Court Judge David Carter issued a final judgment on Monday, March 4.
Magic Key holder Jenale Nielsen sued Disney in 2021, not long after the Magic Key program launched as a replacement for the Annual Pass program. Nielsen purchased the highest Magic Key tier, the Dream Key. The suit alleged that the limited park pass reservations available to Dream Key holders were contrary to Disney’s promise that the $1,399 pass had no blockout dates.
The Dream Key pass has since been retired and replaced by the Inspire Key. Disney no longer lists “no blockout dates” as a perk of any Magic Key passes. Disney also added a clause to the Magic Key terms and conditions that requires Key holders to waive the right to file a class action lawsuit.
Disneyland has agreed to pay each of the 103,431 Dream Key holders about $67.41. Now that the case is finalized, payments should be coming soon. A third-party settlement administrator will notify Dream Key holders and pay them via email or regular mail.
The administrator will email guests at the address connected to their Disney account. If the email bounces back or the guest doesn’t have an email on file, they will send a check by snail mail.
Dream Key holders do not need to submit a claim, although the administrator does plan to set up a website where they can update their email or mail addresses.
Nielsen’s lawyers originally sought $39 million, which would have worked out to about $379 per Dream Key holder. Disney’s final payout is $9.5 million with $7 million going to Key holders. Nielsen will get $5,000 as an “incentive award” for her time and effort. Nielsen’s lawyers are receiving $2.375 million. The judge also ordered a $192,000 reimbursement for litigation costs.
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