New York City’s pension funds and the state of Oregon filed a lawsuit against Fox Corporation, alleging that the company allowed Fox News to spread false information about the 2020 election, which exposed the network to defamation lawsuits and harmed investors.
The lawsuit, filed in Delaware, claims that the company amplified conspiracy theories about the election, including a case where Fox News agreed to settle for nearly $800 million with Dominion Voting Systems, a voting machine company.
New York City Comptroller Brad Lander, who manages the city’s pension funds, stated, “Fox’s board of directors has blatantly disregarded the need for journalistic standards and failed to put safeguards in place despite having a business model that invites defamation litigation.”
Fox Corporation has not yet commented on the lawsuit.
New York City’s pension funds hold shares in Fox Corporation valued at $28.1 million, while Oregon holds shares worth approximately $5.2 million.
The lawsuit alleges that Fox’s board made a conscious decision to promote former President Donald Trump’s election falsehoods in order to cater to his supporters, knowing that it would expose the company to defamation lawsuits.
“Defendants chose to invite robust defamation claims, with potentially huge financial liability and potentially larger business repercussions, rather than disappoint viewers of Fox News,” the lawsuit states.
In April, Fox News agreed to pay Dominion Voting Systems $787.5 million to avoid a trial in the voting machine company’s defamation lawsuit.
Lachlan Murdoch, chair and CEO of Fox Corp., said the settlement was in the best interests of the company and its shareholders.
Another voting machine company, Smartmatic USA, also sued Fox News over false election claims.
Oregon Attorney General Ellen Rosenblum stated that Fox Corporation breached its fiduciary duties by disregarding the legal risks of spreading falsehoods.
“The directors’ choices exposed themselves and the company to liability and exposed their shareholders to significant risks,” Rosenblum said. “That is the crux of our lawsuit, and we look forward to making our case in court.”
