From NPR · · 3m
Judge orders Fox to hand over scandal documents
A Delaware court ruled that Fox must release hundreds of records in a shareholders' lawsuit challenging how Rupert Murdoch's company handled major scandals.
In brief
A Delaware court ruled that Fox must release hundreds of records in a shareholders' lawsuit challenging how Rupert Murdoch's company handled major scandals. Fox shareholders are trying to prove the company's board wasn't truly independent by examining decades of ties between Rupert Murdoch and a key director, and a…
Fox ordered to release scandal documents
A Delaware judge ruled Friday that Fox Corp. must turn over hundreds of documents in a shareholders' lawsuit. The records could reveal how founder Rupert Murdoch and board members handled major scandals over two decades.
Shareholders challenge board independence
The lawsuit, filed three years ago, claims Murdoch, his son Lachlan, and other executives fostered a business model that repeatedly exposed Fox to scandal and costly litigation. Shareholders want to hold them legally responsible.
Dominion settlement sparked the case
Fox paid nearly 800 million dollars to Dominion Voting Systems after the network spread conspiracy theories about fraud in the 2020 election. A similar case from Smartmatic USA is ongoing and seeks 2.7 billion dollars.
Other major scandals cited
The lawsuit also points to an undisclosed settlement with Seth Rich's family over a retracted story, and a phone hacking scandal in Britain that cost News Corp. about 1.5 billion dollars so far.
Key focus: Jacques Nasser's independence
The case hinges on whether former Ford CEO Jacques Nasser, who served on Murdoch boards for over 20 years earning six-figure compensation, was truly independent or too close to the Murdochs to act as a check on them.
Nasser's role at British Sky Broadcasting
Attorneys want to examine how Nasser supported the Murdochs' agenda during a decade at British Sky Broadcasting, including backing Lachlan's brother James as CEO and supporting a controversial stock buyback that boosted Murdoch family control.
“increased the clout of the Murdoch family”
Murdoch's deleted text messages
Rupert Murdoch auto-deleted all text messages until April 2022, after Dominion filed its lawsuit. Fox's lawyers admitted there was a period when text messages were not retained, raising questions about destroyed evidence.
Judge rules fully for shareholders
Vice Chancellor Bonnie David rejected Fox's attempt to shield the documents. Fox must now hand over all email addresses used by Nasser and Murdoch, years of board meeting minutes, and sealed records from the Smartmatic case.
What shareholders need to prove
If evidence shows Nasser was so close to the Murdochs that he prioritized their interests over the company's, lawyers can argue more than half the board wasn't independent. That would likely send the case to trial.
The headline
Fox shareholders are trying to prove the company's board wasn't truly independent by examining decades of ties between Rupert Murdoch and a key director, and a judge just gave them access to the documents they need.
