Lawsuits filed against Fox Corporation over election falsehoods

New York City’s pension funds and the state of Oregon have filed lawsuits against Fox Corporation, claiming that the company's broadcast of false information about the 2020 election has harmed investors. The case alleges that Fox News, a subsidiary of Fox Corporation, invited defamation lawsuits by amplifying conspiracy theories surrounding the election.

The lawsuit, filed in Delaware, points to the settlement of a defamation lawsuit between Fox News and Dominion Voting Systems, a voting machine company, for an amount close to $800 million. According to the complaint, Fox's board of directors failed to establish journalistic standards and neglected to implement safeguards despite having a business model that makes them susceptible to defamation litigation.

New York City Comptroller Brad Lander, who manages the city's pension funds, stated that Fox's board disregarded the need for journalistic integrity by promoting election falsehoods. A spokesperson for Fox Corporation has not yet responded to a request for comment.

New York City's pension funds have been long-term shareholders of Fox Corp, with shares valued at $28.1 million as of July. Additionally, the state of Oregon holds approximately $5.2 million worth of shares in the company.

The complaint does not specify the damages being sought but alleges that Fox's board knowingly broadcast false claims made by former President Donald Trump about the election in order to appease his supporters, thus making the company vulnerable to defamation lawsuits.

"Fox News Faces Defamation Claims Over Election Lies"

In a recent lawsuit, it has been alleged that Fox News knowingly spread false information about the 2020 presidential election, resulting in potential financial liabilities and serious business consequences. The defendants consciously chose to prioritize pleasing their viewers over the potential negative repercussions of their actions.

As part of their efforts to avoid a trial, Fox News reached a settlement agreement with Dominion Voting Systems, agreeing to pay a substantial sum of $787.5 million. This prevented the exposure of their role in promoting baseless conspiracy theories about the election and how Dominion's voting machines had manipulated votes from former President Trump to now President Biden.

Another voting machine company, Smartmatic USA, has also taken legal action against Fox News for propagation of false election claims.

Oregon Attorney General, Ellen Rosenblum, expressed her belief that the Fox Corporation breached its fiduciary responsibilities by disregarding the legal risks associated with spreading falsehoods. She asserted that the choices made by the company's directors not only put themselves at risk but also exposed their shareholders to significant liabilities.

The implications of this case extend beyond Fox News alone, as both Fox Corp. and parent company News Corp share a common ownership structure.

Ultimately, this legal battle raises important questions about media ethics and accountability, as well as the responsibility of news outlets to disseminate accurate information to the public. The outcome of this case will undoubtedly have significant implications for the future of journalistic integrity.