New York City 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, which was filed in Delaware, claims that Fox Corporation invited defamation lawsuits by amplifying conspiracy theories about the election. It specifically mentions the case of Dominion Voting Systems, a voting machine company that Fox News agreed to settle with for $800 million.
According to the complaint, Fox’s board of directors disregarded journalistic standards and failed to put safeguards in place, despite knowing that their actions could lead to defamation lawsuits. The lawsuit accuses Fox Corporation of choosing to broadcast former President Donald Trump’s election falsehoods in order to satisfy his supporters, even though they knew it would expose them to legal liability.
New York City’s pension funds, valued at $28.1 million, and Oregon, with shares worth $5.2 million, are long-term shareholders of Fox Corporation. The lawsuit does not specify the damages being sought but claims that Fox’s decision to broadcast false information was a breach of their fiduciary duties and put their shareholders at risk.
In April, Fox News agreed to pay Dominion Voting Systems $787.5 million to avoid a trial. Dominion had sued Fox News for damaging its reputation by promoting conspiracy theories about the election. Another voting machine company, Smartmatic USA, has also sued Fox News over its false election claims.
The lawsuit filed by New York City and Oregon alleges that Fox Corporation prioritized pleasing its viewers over the potential financial liabilities and business repercussions of spreading false information. The case will now proceed in court, where the plaintiffs will have the opportunity to present their case.
The spokesperson for Fox Corporation has not yet responded to the lawsuit.
