Oregon is invested in Fox Corp. and is investigating its board over bogus election fraud claims

The attorney general of Oregon has launched an investigation into the board of directors of Fox Corp. for breaching their fiduciary duties. The investigation stems from allegations that Fox News broadcasted false claims about the 2020 presidential election, resulting in a significant financial loss of nearly $800 million in a lawsuit against the company. Oregon State Treasurer Tobias Read, who oversees the Oregon Public Employees Retirement Fund, which holds a substantial number of Fox stock shares, has also joined the investigation. Both Read and Attorney General Ellen Rosenblum, who are Democrats, believe that the board of directors allowed Fox News to disseminate baseless claims of election fraud, specifically implicating Dominion and Smartmatic. They aim to hold the board accountable and safeguard Oregon’s investment in Fox Corp.

The announcement prompted no immediate response from Fox’s head of corporate communications.

In a separate legal dispute, Fox News recently reached a settlement of $787.5 million with Dominion Voting Systems to avoid a trial regarding the network’s promotion of unfounded conspiracy theories about the election. Dominion had accused Fox News, a subsidiary of Fox Corp., of damaging its reputation by spreading false information suggesting that their voting machines manipulated votes in favor of Joe Biden.

The Oregon Department of Justice has indicated that the investigation may result in a lawsuit against Fox’s management on behalf of the company’s affected investors, including Oregon’s public employees. The department emphasizes that the directors and senior officers of Fox Corp. have a responsibility to competently and honestly manage the company, preventing significant financial harm to shareholders. Treasurer Read, who is a member of the Oregon Investment Council, further expressed their commitment to holding the board of directors, including Rupert and Lachlan Murdoch, accountable for their decisions. Investigating Fox’s financial records is deemed crucial to fulfilling their obligations to the beneficiaries of the Oregon Public Employees Retirement Fund.

As of May 26, the Oregon pension fund owned 168,075 Class A common stock shares and 92,850 Class B shares of Fox stock, according to Roy Kaufmann, spokesperson for Attorney General Rosenblum.

Additionally, Fox News is facing a lawsuit from Smartmatic USA, another voting machine company, for similar false election claims. Dominion had initially filed a $1.6 billion lawsuit against Fox.

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More about investigation into Fox Corp. board

• Oregon Attorney General
• Fox Corp.
• Dominion Voting Systems
• Smartmatic USA