Fox ordered to release hundreds of documents in shareholder case
What's the story
A Delaware judge has ordered Fox Corporation, owned by media mogul Rupert Murdoch, to produce hundreds of documents. The ruling comes in a long-standing case filed by shareholders of Fox Corp. The lawsuit was originally filed three years ago and seeks to hold Murdoch, his eldest son Lachlan (now executive chairman and CEO), and other board members accountable for creating a business model that has repeatedly embroiled the media company in scandals and expensive lawsuits.
Case details
Lawsuit triggered by $800 million settlement with Dominion Voting Systems
The shareholders' lawsuit was triggered by a nearly $800 million settlement Fox reached with Dominion Voting Systems.
The latter accused the network of promoting conspiracy theories about election fraud in the 2020 presidential elections.
Another defamation case from voting tech company Smartmatic USA is still pending, with the company seeking $2.7 billion from Fox.
Additional controversies
Shareholders also mention Fox's retraction of Seth Rich story
The shareholders' lawsuit also highlights an undisclosed settlement with the family of Seth Rich.
Fox had published and then retracted a story accusing Rich of leaking documents to hurt Democratic presidential candidate Hillary Clinton, while suggesting that the party was involved in the former Democratic National Committee staffer's shooting death in 2016.
The case also mentions a phone-hacking scandal that cost News Corp. another Murdoch media company, some $1.5 billion so far.
Key relationship
Plaintiffs question Jacques Nasser's independence from Murdochs
The shareholders' case largely hinges on the decades-long relationship between Rupert Murdoch and Jacques Nasser, a former CEO of Ford Motor Co.
Nasser served as an independent director on several Murdoch corporate boards for over two decades.
The plaintiffs are questioning whether he acted truly independently or was too close to the Murdochs, which could prove that more than half of Fox's board members were not independent.
Legal battle
Fox's attorneys tried to keep documents under wraps
Fox's attorneys attempted to convince a judge to keep a trove of documents, including some 700 with the phrase "phone hacking" and dozens of board meeting records from Fox Corp. and other organizations, as well as emails from Nasser's Ford accounts, under wraps.
However, Vice Chancellor Bonnie David ruled in favor of the plaintiffs.
Fox will now have to disclose all email addresses ever used by Nasser or Rupert Murdoch, along with years worth of Fox board meeting minutes.