A Delaware judge has ordered Fox Corp. to hand over hundreds of documents that could shed light on how Rupert Murdoch and a key corporate director handled major scandals at the media company over the past two decades. The case, brought by Fox Corp. stockholders, aims to hold Murdoch, his eldest son Lachlan, and several other board members and executives accountable for fostering a business model that has exposed the company to numerous scandals and costly litigation.
The lawsuit was sparked by a nearly $800 million settlement Fox paid to Dominion Voting Systems, which accused the network of spreading conspiracy theories about fraud in the 2020 election. A similar defamation case brought by another voting tech company, Smartmatic USA, is ongoing, with the company seeking $2.7 billion from Fox. The shareholders' lawsuit also points to an undisclosed settlement with the family of Seth Rich and a phone hacking scandal that rocked Britain over a decade ago.
The case relies heavily on the relationship between Rupert Murdoch and former Ford Motor Co. CEO Jacques Nasser, who served on various Murdoch corporate boards, including as lead independent director at Fox Corp. until 2023. Shareholders suing Fox are challenging whether Nasser was acting truly independently, and if the evidence reveals he was not, it could prove that more than half of Fox's board members were not independent.
A Delaware judge ruled in favor of the plaintiffs, ordering Fox to hand over a trove of documents, including around 700 documents containing the phrase "phone hacking" and dozens of board meeting records from Fox Corp. and other organizations. The documents could shed light on the relationship between Murdoch and Nasser, as well as how other Fox board members were selected.
The documents may also reveal how Rupert Murdoch had deleted text messages, some of which could have been relevant to other legal cases, including Smartmatic's case involving Fox's coverage of the 2020 election. Smartmatic has accused Fox and Murdoch of intentionally destroying evidence. Fox's attorneys had tried to shield the documents, but the judge ruled that they must be handed over.
Attorneys are particularly interested in how Nasser supported the Murdochs' agenda during his time on the board of British Sky Broadcasting, a British media company. Nasser backed Lachlan's younger brother, James, as CEO and stood by the Murdochs during the phone hacking scandal. He also supported a controversial stock buyback program that increased the clout of the Murdoch family.
The ruling is a significant development in the long-running case, which could have implications for Fox Corp. and its leadership. The company's attorneys had argued that the documents were not relevant to the case, but the judge disagreed. Fox will now be forced to hand over a list of all email addresses ever used by Nasser or Rupert Murdoch, as well as years worth of Fox board meeting minutes.
Key points
- Fox Corp. must turn over hundreds of documents in a long-running case brought by shareholders.
- The case aims to hold Rupert Murdoch and other executives accountable for fostering a business model that has exposed the company to numerous scandals.
- The documents could shed light on the relationship between Murdoch and former Ford Motor Co. CEO Jacques Nasser, who served on various Murdoch corporate boards.
