Investigating Fox News' Coverage of Trump's Claims
Investors are invoking Delaware corporate law provisions to demand records regarding Fox leaders' actions as the network aired segments discussing Trump's false assertions that he lost the 2020 presidential election due to voter fraud.
Shareholders Seek Evidence of Dereliction
In previously unreported actions, shareholders are pursuing records like board minutes, emails, and texts that might contain proof that Fox directors and executives were negligent in allowing the network to broadcast false claims.
Building a Case for Personal Liability
Using this evidence and findings from other lawsuits, shareholders may seek to hold Fox leaders personally liable for costs stemming from two defamation cases filed by voting-machine companies over Fox's coverage.
Anonymous Sources Reveal Information Demands
The sources, who requested anonymity, did not disclose further details or how many Fox shareholders are involved in pursuing these information demands, which are not public.
Fox's Defamation Trials and Impact on Shareholder Claims
Suppose Fox loses the defamation trials, especially with large damage awards. In that case, shareholders may argue that the board should have implemented procedures to prevent airing defamatory claims that harmed the company's credibility and finances.
Previous Shareholder Derivative Claims
Past shareholder derivative claims led to significant settlements over Fox News's handling of sexual harassment and a phone hacking scandal at London tabloids, funded by insurance policies.
Potential Independent Panel for News Accuracy
Investors suing over the 2020 election coverage may aim to establish an independent panel to report on news accuracy to the Fox board.