Actually, not. The real story is a bit more interesting.
Katzenberg never heard the Bug's Life pitch while at Disney.
But after he left for DreamWorks, he stayed in touch with Lasseter,
occasionally pinging him with one of his typical "Hey buddy, how you doing just checking in" quick phone calls.
So when Lasseter happened to be at the Technicolor facility on the Universal lot,
where DreamWorks was also located, he called Katzenberg and dropped by with a couple of colleagues.
When Katzenberg asked what they were doing next, Lasseter told him.
"We described to him A Bug's Life, with an ant as the main character,
and told him the whole story of him organizing the other ants and enlisting a group of circus performer insects to fight off the grasshoppers," Lasseter recalled.
"I should have been wary. Jeffrey kept asking questions about when it would be released."