Disneyland agrees to pay $9.5 million to settle dispute over Magic Key annual pass

ANAHEIM, Calif. — The Walt Disney Company agreed to pay $9.5 million to settle a lawsuit that alleges that annual pass holders who purchased the most expensive plan were misled and deceived into thinking they got unlimited theme park access.

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The lawsuit filed by Jenale Nielsen claims that Disneyland misled and deceived Magic Key holders who purchased the most expensive annual passes believing that they would get unlimited theme park access just to learn they could only get reservations on certain days, according to KTLA.

According to a company news release in 2021, the Dream Key pass promised admission into the park every day, CNN reported.

The settlement terms revealed a $9.5 million settlement fund, according to KTLA. The fund would be set up to create a payout for those who purchased the Dream Key pass. The Dream Key pass was a Magic Key-like pass that has been discontinued and was the focus of the lawsuit.

Around 103,435 former Dream Key pass holders will receive a payment, the news outlet reported. The settlement will most likely come down to a check for $67.41 per member involved in the lawsuit, according to the filing obtained by CNN.

Those affected by the lawsuit might have to wait months to get a check, said David Marcus, a professor of law at the University of California, Los Angeles, according to CNN.

“This step, where the parties announced that they’ve reached a settlement, is really the first step in a series that will take a minimum of 3 months to complete,” he said, per CNN.

A judge still has to set a final approval hearing to make the settlement official, CNN reported, which Marcus said after that final approval “people can expect to see a check.”

The Dream Key has been replaced by the Inspire Key, KTLA reported. It’s Disneyland’s most expensive pass that has the least amount of blackout dates.