A shareholder of Fox Corp. sued Rupert Murdoch, Lachlan Murdoch and several Fox Corp board members. in Delaware on Tuesday afternoon, arguing that they breached their fiduciary duty to the company by allowing Fox News to air election conspiracy theories.
The derivative action – a type of lawsuit brought by shareholders who believe they have been wronged by the company – was brought by a single plaintiff, Robert Schwarz.
“The board’s decision to chase viewers by promoting the false, stolen election claims exposed the company to public ridicule and negatively impacted the credibility of Fox News as a media organization expected to accurately report events. worthy of interest. The company is now the subject of two defamation cases, with combined damages sought exceeding $4 billion,” the lawsuit alleges.
The lawsuit builds on the wealth of internal communications, documents and evidence made public in Dominion Voting Systems’ sweeping $1.6 billion defamation lawsuit against Fox News and Fox Corp., which uncovered that many at Fox News knew the rigged election claims were false even though they allowed their continued broadcast.
“FOX knew – from the boardroom – that Fox News was reporting dangerous false information about the 2020 presidential election, but FOX was more concerned with short-term ratings and market share than long-term damage. end of his inability to tell the truth, ”continues the file.
Lawyers for Dominion Voting Systems argued in their court filings that Fox executives raised election conspiracy theories because they feared losing their audience following Donald Trump’s defeat in the 2020 presidential election.
Fox News has denied defaming Dominion Voting Systems, arguing that its broadcasts and social media posts are protected by the First Amendment.
Schwarz’s attorneys declined to comment in an email. Fox News and Fox Corp. did not immediately respond to a request for comment.
Bloomberg Law recently reported that several companies are considering derivative action against members of Fox Corp’s board of directors.