New York City pension funds sue Fox Corporation Board for breach of fiduciary duty in connection with defamatory broadcasts

New York City – The five New York City pension funds filed a shareholder derivative lawsuit today against the board of directors and certain officers of Fox Corporation, the parent company of Fox News Network, for breach of fiduciary duty. The funds are long-term shareholders of Fox Corporation, with approximately 572,946 shares of Fox Class A stock and 285,338 shares of Fox Class B stock worth, valued at $27.7 million as of August 31, 2023.

“Fox’s board of directors has blatantly disregarded the need for journalistic standards and failed to put safeguards in place despite having a business model that invites defamation litigation,” said New York City Comptroller Brad Lander. “A lack of journalistic standards and a proper strategy to mitigate defamation has clearly harmed Fox’s reputation and threatens their bottom line and long-term profitability. Clear governance systems are absolutely necessary for the long-term health of a company. As Fox’s board continues to ignore these red flags, we are holding them accountable as long-term shareholders.”