- Shares in Fox Corp dropped nearly twelve percent at one stage on Friday, despite a rally in global stocks.
- Fox, whose principal stockholder is Rupert Murdoch and his family interests, owns Fox News which on Friday had a $1.6 billion defamation lawsuit filed against it.
- Dominion Voting Systems claims Fox News falsely asserted it had manipulated the results of the 2020 presidential election to boost its ratings.
NEW YORK, New York – Shares in Fox Corp dropped nearly twelve percent at one stage on Friday, despite a rally in global stocks which drove all the major U.S. indices higher.
Fox, whose principal stockholder is Rupert Murdoch and his family interests, owns Fox News which on Friday had a $1.6 billion defamation lawsuit filed against it.
Dominion Voting Systems claims Fox News falsely asserted it had manipulated the results of the 2020 presidential election to boost its ratings, which had taken a hit from alternative conservative networks.
Fox, it is alleged, aired claims by former President Donald Trump and others that the election was rigged to secure victory for Joe Biden. Those claims, it is claimed, inspired the 6 January 2021 storming of the U.S. Capitol which left 5 people dead. President Trump was impeached for a second time as a result of the riots.
Dominion, in its filing in Delaware where both companies (Dominion and Fox) are incorporated, alleges Fox News, aired claims that Dominion manipulated votes, and “sold a false story of election fraud in order to serve its own commercial purposes, severely injuring Dominion in the process,” according to The Associated Press, which says it has seen a copy of the lawsuit.
“The truth matters. Lies have consequences,” the lawsuit said. “Fox sold a false story of election fraud in order to serve its own commercial purposes, severely injuring Dominion in the process. If this case does not rise to the level of defamation by a broadcaster, then nothing does,” the suit said.
“Fox engaged in this knowing and reckless propagation of these enormous falsehoods in order to profit off these lies.”
“Fox wanted to continue to protect its broadcast ratings, catering to an audience deeply loyal to President Trump,” the lawsuit says.
The network denies the claims, and in a statement released on Friday said it would vigorously defend against the suit.
“Fox News Media is proud of our 2020 election coverage, which stands in the highest tradition of American journalism, and we will vigorously defend against this baseless lawsuit in court,” the Fox News statement said.
On Friday Fox Corp shares lost $2.25 to close at $36.17, a loss of 5.86 percent. At one point in mid-afternoon, the stock had tumbled to $33.96, for a loss of 11.96 percent.
It was not good news for founder Rupert Murdoch, who according to an SEC filing, lifted his holding earlier this month by 500,000 shares, at a cost of nearly $43 a share.
Fox Corp on Monday this week beefed up its legal counsel ahead of the Dominion filing, which is one of a number of legal claims the company is facing over claims relating to the 2020 election.
Jeff A. Taylor has been appointed as General Counsel. Taylor, who joined Fox in 2019 as Executive Vice President and Chief Litigation Counsel, will oversee the Company’s legal function. Claudia Teran, the company said in a statement, will remain Executive Vice President and Corporate General Counsel, as well as General Counsel of Fox Sports. Both Taylor and Teran will continue to report to Chief Legal and Policy Officer Viet D. Dinh.
“Jeff is the consummate professional. He confidently navigates complex legal matters, ensures best corporate governance, and inspires his teams. Jeff will put all that experience and expertise into greater action as he leads our legal function,” Dinh said when the appointment was announced on Monday.
