Fox Corp sued by NYC Pension Funds, Oregon over 2020 election coverage.
The State of Oregon Joins Lawsuit Against Fox Corporation
The state of Oregon has taken a stand against Fox Corporation, the corporate parent of Fox News, by filing a stockholder derivative lawsuit. This move comes after New York City Pension Funds also filed a similar lawsuit. The lawsuit accuses the board of Fox Corporation of breaching its fiduciary duty by spreading false information in its post-2020 election coverage, which opens the company up to defamation lawsuits.
Oregon Attorney General Ellen Rosenblum, in a statement, criticized Fox Corporation’s board for knowingly exposing the company and its shareholders to significant risks for the sake of profit. She stated that the board “took a massive risk in pursuing profits by perpetuating and peddling known falsehoods.”
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According to Ms. Rosenblum, the directors’ choices have not only exposed themselves and the company to liability but also put their shareholders at significant risk. She emphasized that this is the core of their lawsuit and they are eager to present their case in court.
The board of Fox Corporation consists of media tycoon Rupert Murdoch, who serves as the chair, and his son Lachlan Murdoch, who is the executive chair and CEO. Other members include William Burck, Chase Carey, Anne Dias, Roland Hernandez, Jacques Nasser, and Paul Ryan.
Oregon Attorney General is representing the Oregon Public Employee Retirement Fund (OPERF), an investor in Fox Corporation. OPERF holds approximately $5.2 million worth of Class A and Class B shares in the company.
The lawsuit stems from a joint investigation conducted by the Oregon Department of Justice and the Oregon Treasurer’s Office. The investigation revealed that Fox Corporation’s management, on behalf of the company, has allegedly harmed investors, including Oregon’s public employees.
The complaint alleges that the board of Fox Corporation was fully aware of the risks of defamation charges due to Fox News’ promotion of political narratives, regardless of their factual accuracy. The attorney general’s office stated that the board should have been more cautious about spreading false claims that appeal to their audience.
The lawsuit, filed by Oregon and New York City Pension Funds, also highlights the lack of effort by Fox Corporation to monitor or mitigate the risk of defamation. This sets the company apart from other major media organizations in the country.
New York City Comptroller Brad Lander, who oversees the pension funds, criticized the Fox Corporation board for failing to uphold journalistic standards. He stated that the board’s lack of safeguards in their business model invites defamation litigation.
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