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Fox Shareholders Investigate Directors over Election Fraud Coverage

According to anonymous sources, Fox Corp shareholders are requesting access to internal company records to determine if directors and executives appropriately supervised Fox News' coverage of former President Donald Trump's election-rigging allegations.

FOX building
FOX building

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.