In the wake of the scandal, Mr. Ailes resigned on July 21, 2016, receiving a $40 million exit package. In September, Fox settled Gretchen Carlson's lawsuit for $20 million. Mr. Ailes did not contribute to the settlement, although he was the sole defendant named in the lawsuit.
Mr. Ailes's behavior has already exposed the company to significant civil liability and may further cause harm to the company and its shareholders as key personnel leave the network. Many Fox news anchors have "key man" clauses in their contracts letting them out of their contracts following Mr. Ailes's departure. Longtime news anchor Greta Van Susteren used such a "key man" provision when she abruptly left the network in September.
The company's officers and directors may have breached their fiduciary duties by failing to conduct an investigation into the conduct of other senior executives who allegedly conspired with Ailes to cover up his transgressions. This includes Bill Shine, Senior Executive Vice President of Programming, who was promoted to Co-President of Fox News and extended a long-term contract following the scandal, despite reports that he helped facilitate and conceal Ailes's behavior. The company's officers and directors may be responsible for causing significant financial and reputational harm to the company.
If you currently own stock in Twenty-First Century Fox, Inc. and wish to obtain additional information about our investigation and your legal rights, please contact Kathryn Schubert via email at email@example.com or by telephone at (415) 788-4220, or fill out the form on our website at www.classactionlawyers.com/fox.
About Schubert Jonckheer & Kolbe
Schubert Jonckheer & Kolbe has extensive experience in prosecuting securities claims and has successfully represented investors throughout the nation in shareholder lawsuits. Attorney advertising. Prior results do not guarantee similar outcomes.
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SOURCE Schubert Jonckheer & Kolbe LLP