New York City’s pension funds and the state of Oregon have filed a lawsuit against Fox Corporation, alleging that the company harmed investors by allowing Fox News to broadcast false information about the 2020 election. The lawsuit claims that this exposure to defamation lawsuits has caused financial harm to the company.
The lawsuit, filed in Delaware, accuses Fox Corporation of amplifying conspiracy theories about the election, including those involving Dominion Voting Systems, a voting machine company. Fox News agreed to settle a defamation lawsuit with Dominion Voting Systems for nearly $800 million.
New York City Comptroller Brad Lander, who manages the city’s pension funds, stated that Fox’s board of directors failed to uphold journalistic standards and neglected to put safeguards in place to prevent defamation litigation.
The complaint does not specify the damages it seeks but alleges that Fox’s board deliberately chose to broadcast false election claims to satisfy former President Donald Trump’s supporters, even though doing so would potentially lead to defamation lawsuits and financial liability.
Fox Corporation, represented by a spokesperson, has not yet responded to the lawsuit.
New York City’s pension funds hold shares in Fox Corporation valued at $28.1 million, while Oregon holds shares worth approximately $5.2 million.
In April, Fox News agreed to pay Dominion Voting Systems $787.5 million to avoid a trial in Dominion’s defamation lawsuit. The lawsuit accused Fox News of promoting false conspiracy theories about the 2020 election, which allegedly damaged Dominion’s reputation.
Smartmatic USA, another voting machine company, has also sued Fox News over its election claims.
Oregon Attorney General Ellen Rosenblum stated that Fox Corporation breached its fiduciary duties by disregarding the legal risks of spreading false information. The lawsuit aims to hold the company accountable for its actions.
