New York City Pension Funds and Oregon State File Lawsuit Against Fox Corporation Over 2020 Election Reports

Pension funds managed by New York City and the state of Oregon initiated legal proceedings against Fox Corporation on Tuesday, contending that the media company imperiled investors through Fox News’s dissemination of inaccurate information related to the 2020 presidential election, thus making the network vulnerable to defamation legal actions.

The legal complaint, lodged in a Delaware court, charges Fox Corporation with exposing itself to defamation lawsuits by propagating election-related conspiracy theories. Among these legal actions is an almost $800 million settlement that Fox News reached with Dominion Voting Systems, a manufacturer of electronic voting systems.

“Fox Corporation’s board of directors has overtly neglected the requirement for adhering to journalistic ethics and failed to implement protective measures, even though their business model inherently incurs the risk of defamation lawsuits,” stated Brad Lander, New York City Comptroller, who oversees the city’s pension assets.

Fox Corporation chose not to offer any comments when reached by the press.

The pension funds of New York City, which are long-term stakeholders in Fox Corporation, owned shares in the company with an approximate worth of $28.1 million as of the end of July. Meanwhile, the state of Oregon possesses shares valued at around $5.2 million.

The lawsuit, without detailing the extent of the damages being sought, contends that Fox’s board deliberately opted to air former President Donald Trump’s inaccurate claims concerning the election to appease his base of supporters, fully cognizant of the legal vulnerabilities this would introduce for the company.

“Rather than risk alienating their Fox News audience, the defendants willingly exposed themselves to significant defamation lawsuits and, potentially, consequential financial and business ramifications,” stated the lawsuit.

In April, to avoid proceeding to court, Fox News consented to remit $787.5 million to Dominion Voting Systems, which had contended that the network tarnished its reputation by broadcasting spurious conspiracy theories suggesting that Dominion’s machinery manipulated votes in favor of Democrat Joe Biden.

Lachlan Murdoch, Chairman and CEO of Fox Corporation, mentioned at the time of the settlement announcement that avoiding “the discord of a polarizing trial and an extended appeals process was manifestly in the best interests of the company and its stakeholders.”

Fox News was also a defendant in a similar lawsuit filed by another election technology company, Smartmatic USA, for its coverage related to election conspiracy theories.

In a public statement, Ellen Rosenblum, Attorney General of Oregon, stated that Fox Corporation neglected its fiduciary responsibilities by not adequately considering the legal risks involved.

“By making these choices, both the directors and the corporation opened themselves to liability and introduced their shareholders to considerable risks. This forms the essence of our lawsuit, and we are eager to present our arguments in court,” she concluded.

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More about Fox Corporation Lawsuit

• Fox Corporation Official Website
• Delaware Court System
• New York City Comptroller’s Office
• Dominion Voting Systems
• Oregon Attorney General’s Office
• Smartmatic Official Website
• 2020 Presidential Election Results