Sky News host James Morrow says "poor Rosita the muppet" has been cancelled and removed from all areas of the Sesame Place theme park in the United States.
"Somebody took offence because there was some footage where the person playing Rosita ... apparently ignored the child who was black," Mr Morrow said.
Sky News host Rita Panahi said there is now a multi-million dollar lawsuit launched and the character completely removed from the park.
