A recent ruling requires Fox Corp. to deliver hundreds of documents that may provide insights into how Rupert Murdoch managed significant controversies.
Rupert Murdoch’s Fox Corp. faces a demand to disclose a substantial number of records pertaining to how Murdoch and a notable corporate director oversaw major scandals at the company’s properties over two decades. This decision was made by a Delaware judge in a longstanding case initiated by Fox Corp. stockholders. Three years ago, shareholders filed the lawsuit, aiming to hold Murdoch, his son Lachlan, and other board members responsible for a business model that exposed the company to repeated scandals and costly litigation.
The lawsuit was prompted by an $800 million settlement paid by Fox to Dominion Voting Systems, which accused the network of disseminating conspiracy theories about fraud in the 2020 election. Additionally, Smartmatic USA has an ongoing defamation suit against Fox, seeking $2.7 billion.
The shareholders’ lawsuit also mentions a settlement with the Seth Rich family, following the publication and retraction of a story by Fox implying that Rich leaked documents to harm Hillary Clinton’s candidacy. Another scandal involved phone hacking in Britain, costing News Corp., another Murdoch company, approximately $1.5 billion. Fox Corp. was separated from News Corp. to safeguard Murdoch’s U.S. television licenses from challenges. Discussions about reuniting the companies have surfaced recently.
The lawsuit’s success depends significantly on the findings regarding Rupert Murdoch and Jacques Nasser, a former Ford Motor Co. CEO and independent director on Murdoch’s corporate boards. Nasser served as lead independent director until stepping down in 2023, the year the Dominion case was resolved. Shareholders contest Nasser’s independence, arguing he favored Murdoch’s interests over those of Fox.
If Nasser’s relationship with the Murdochs compromised his independence, evidence might show insufficient independent directors on Fox’s board, potentially leading the case to trial.
“That documents were deleted wholesale is incorrect.” – Fox Attorney Anitha Reddy
Fox attorneys attempted to protect a cache of documents, including those relating to phone hacking and board meetings, but the judge denied their request. These records could illuminate the dynamics between Rupert Murdoch and Nasser, the selection of Fox board members, and the deletion of Murdoch’s text messages, relevant to other legal proceedings.
Fox attorneys highlighted that Murdoch ceased auto-deleting text messages in April 2022, post the Dominion lawsuit. They pointed out Murdoch’s preference for emails over texts, though admitting that retaining texts hadn’t been practiced for a period.
Judge Bonnie David ruled in favor of the plaintiffs, requiring Fox to provide a complete list of email addresses used by Nasser and Murdoch, alongside extensive Fox board meeting records. The attorneys may also scrutinize sealed court papers from the Smartmatic lawsuit related to Murdoch’s deletion of messages, termed legal “spoliation” of data.
Fox lawyers accused Dominion and Smartmatic executives of destroying evidence in their trials, requesting sanctions. During Dominion’s case, their attorneys claimed some Fox personalities, including now Defense Secretary Pete Hegseth, failed to preserve essential communications for the trial.