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Disney Denies Dropping Claim: Henson Associates, owner...

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From Times Staff and Wire Reports

Disney Denies Dropping Claim: Henson Associates, owner of the Muppet characters, said Walt Disney Co. dropped a fraud claim against it--but Disney denied the Henson announcement, calling it “bizarre.” Disney’s claim, filed Monday in response to a Henson lawsuit alleging that Disney used Muppet characters without permission, contends that Henson violated an oral agreement that Disney could use the Muppets. “The fact that Disney is already withdrawing one of its most offensive allegations underscores the weakness of their defense,” Henson’s statement said. But Disney said, “We have not withdrawn our fraud claim.”

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