Michael Ovitz did not have a long stay at Disney

The US giant thanked the big rise in quarterly profits on higher attendances at its theme parks and improved ratings at its television subsidiary ABC.

In the court case, a judge ruled Disney was right to award a $140m (�78m) severance package to a former director.

Michael Ovitz got that amount back in 1996 after only 14 months in the job.

The shareholders said Mr Ovitz had not deserved the money and wanted Disney to repay them the full amount, but the judge in Delaware rejected their arguements and found for the company.

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Disney's net profits for its third quarter ending 30 June were $851m, compared with $604m for the same period a year ago.

Disney's theme parks have enjoyed increased attendance numbers

Profits at its TV station subsidiaries ABC and sports cable channel ESPN were up 48%.

ABC has benefited from hit shows Desperate Housewives and Lost.

Overall Disney revenues increased to $7.7bn from $7.5bn a year earlier, slightly below market expectations.

A lone blemish on the books came from Disney's movie studo group, which saw a $34m loss, mainly due to fewer video sales than a year earlier.

Outgoing Disney chief executive Michael Eisner is stepping down in September.

He has had a number of disputes with shareholders, including being blamed for both Mr Ovitz's appointment and then sizable severance deal.