The biggest winners in the Disneyland Magic Key settlement aren’t annual passholders

The biggest winners in the $9.5 million Magic Key class action lawsuit weren’t Disneyland annual passholders, but rather the plaintiff, the settlement administration firm and the lawyers.

Disney agreed in September to settle a federal lawsuit alleging that annual passholders who purchased the $1,399 Dream Key in 2021 were unable to make theme park reservations at Disneyland and Disney California Adventure despite the promise of “no blockout dates.”

As a result of the class action suit, each of the 103,435 Dream Key annual passholders will get $67.41.

Magic Key passholders will get about $7 million of the $9.5 million settlement. The other $2.5 million will go to fees related to the case.

Magic Key passholder and plaintiff Jenale Nielsen of Santa Clara County will get $5,000 — 75 times what each of the other keyholders get as an “incentive award” for her time, effort and service.

The class-action lawyers representing Nielsen are requesting $2.375 million — or 25% of the $9.5 million settlement.

The settlement administrator for the Magic Key class action case estimates notification costs will run $147,547.The class action settlement administration firm provides notice to passholders, pays out the cash awards, fields inquiries, handles unclaimed funds and deals with all the expenses and taxes related to the settlement.

Disney is out $9.5 million plus attorney fees as a result of the Magic Key lawsuit — but it could have been much worse.

Nielsen’s lawyers had sought $39 million in the class action suit — or $379.19 per Dream Key annual passholders, according to court documents. The settlement saved Disney nearly $30 million in potential damages.