The Fox Corporation board of directors is under investigation by Oregon’s attorney general for their role in Fox News’ dissemination of false election claims following the 2020 presidential election. This led to a massive $787.5 million settlement in April of this year with Dominion Voting Systems. The investigation, which could result in a potential shareholder suit against the board, aims to hold them accountable and protect the long-term value of Oregon’s investment in Fox Corp. State Treasurer Tobias Read will also participate in the investigation, stating that investigating Fox’s books and records is necessary to fulfill their obligation to beneficiaries.
The Fox directors and senior officers have a duty to manage the company competently, honestly, and in a manner that prevents foreseeable and catastrophic financial harm like that inflicted upon company’s shareholders by the Dominion and Smartmatic suits. Fox Corp. has declined to comment on the investigation.
In 2021, Dominion Voting Systems sued Fox News and Fox Corp. for $1.6 billion, claiming that the network’s false claims harmed its reputation by alleging that it was responsible for rigging the election. The case was set to go to trial in April but was settled just after a jury was seated. Fox has defended its coverage of the false election claims, arguing that it was covering newsworthy allegations from then-President Donald Trump and his allies. However, Judge Eric M. Davis rejected newsworthiness as a defense in a pre-trial summary judgment decision.
Fox Corp. CEO Lachlan Murdoch recently stated that settling the Dominion case was a difficult decision but ultimately the right one, as he does not believe Fox News or any of its hosts engaged in defamation during the whole period. Fox also faces a lawsuit from Smartmatic in a New York court, which is still in the discovery phase.
