Fox Corp. Ordered to Release Documents on Rupert Murdoch’s Scandal Management

Fox Corp. is required to release numerous documents that may provide insights into how Rupert Murdoch handled major scandals over the years. A Delaware judge ruled that Fox must turn over these documents in a lawsuit filed by Fox Corp. shareholders. They aim to hold Murdoch and other executives accountable for creating a business model that repeatedly exposed the company to scandals and costly litigation.

The plaintiffs were motivated by Fox’s $800 million settlement with Dominion Voting Systems, which accused the network of promoting conspiracy theories about the 2020 election. Another defamation case by Smartmatic USA is still ongoing, with the company seeking $2.7 billion in damages from Fox.

The lawsuit also highlights an undisclosed settlement with the family of Seth Rich. Fox had published and later retracted a story alleging Rich leaked documents to damage Democratic presidential candidate Hillary Clinton. It further mentions a phone hacking scandal in Britain that cost News Corp., another Murdoch company, approximately $1.5 billion.

The shareholders’ case focuses on the relationship between Rupert Murdoch and Jacques Nasser, former Ford Motor Co. CEO and News Corp. board member. Nasser was supposed to act independently, but the lawsuit questions whether his actions favored the Murdochs over the company’s interests.

In the courtroom, Fox’s attorneys sought to keep certain documents private, but the judge ordered the release of about 700 records, including those related to “phone hacking” and various board meetings. These documents might reveal more about the conduct of Murdoch and other board members.

There is particular interest in Nasser’s support for the Murdoch agenda during his time with British Sky Broadcasting and 21st Century Fox. Details of Murdoch’s deletion of text messages, which might pertain to other legal cases, also attracted attention. Smartmatic accused Murdoch of destroying evidence related to Fox’s 2020 election coverage.

Fox’s lawyers countered that Murdoch preferred email over text messages, resulting in certain texts not being preserved. However, the judge ruled in favor of the plaintiffs, requiring Fox to disclose all email addresses linked to Nasser and Murdoch, and to provide board meeting minutes and sealed court documents from the Smartmatic case.

Fox has also accused Dominion and Smartmatic executives of destroying evidence in their cases and sought sanctions against them.