The pension funds of New York City and the state of Oregon have filed a lawsuit against Fox Corporation, the parent company of Fox News. The lawsuit alleges that Fox News broadcasted falsehoods about the 2020 election, which in turn exposed the network to defamation lawsuits and harmed investors.
The lawsuit, filed in Delaware, claims that Fox Corporation invited defamation lawsuits by amplifying conspiracy theories about the election. It specifically mentions the settlement of nearly $800 million reached between Fox News and Dominion Voting Systems, a voting machine company, as a case that showcases this behavior.
New York City Comptroller, Brad Lander, who manages the city’s pension funds, criticized Fox’s lack of journalistic standards and failure to implement safeguards. A spokesperson for Fox Corporation has not yet commented on the lawsuit.
The pension funds are long-term shareholders of Fox Corporation, with shares valued at $28.1 million for New York City and approximately $5.2 million for Oregon. The lawsuit does not specify the damages being sought.
The lawsuit alleges that Fox’s board decided to broadcast former President Donald Trump’s election falsehoods in order to appease his supporters, despite knowing that it would expose the company to defamation lawsuits. It claims that the decision to prioritize pleasing viewers over potential legal consequences was a breach of fiduciary duty.
In April, Fox News agreed to pay Dominion Voting Systems $787.5 million to avoid going to trial in a defamation lawsuit. Dominion had accused Fox of damaging its reputation by promoting false conspiracy theories about the 2020 election.
Oregon Attorney General Ellen Rosenblum stated that Fox Corporation disregarded the legal risks of spreading falsehoods, breaching its fiduciary duties. The lawsuit aims to hold the company accountable for its actions.
Overall, this lawsuit reflects the ongoing legal battles surrounding the coverage of the 2020 election and the responsibility of media outlets in disseminating accurate information to the public.
