Written by Dawn Chmielewski
(Reuters) – Rupert Murdoch has lost a bid to change his family trust to cement control of his media empire in the hands of his son Lachlan, The New York Times said on Monday, citing unsealed court documents. Reported.
In a ruling filed Saturday, Nevada Secretary of State Edmund Gorman said Rupert Murdoch and his eldest son Lachlan, the head of Fox News parent company Fox Corporation and News Corp. It concluded it had acted in “malice” in its efforts to amend the trust. The Times reported.
Court records show Gorman issued the recommendation or order Saturday, but the document has not been released.
The trust will now divide control of the company evenly between Rupert Murdoch’s four eldest children, Lachlan, James, Elizabeth and Prudence, after his death.
Rupert Murdoch said he proposed amending the family trust after Lachlan’s death to strengthen his leadership of the family’s media empire and prevent interference by Lachlan’s three politically moderate brothers. The Times reported.
In one scenario, three of the heirs would technically have more than a quarter vote, giving them control over the powerful media, even though Lachlan Murdoch runs FOX and is sole chairman of News Corp. A battle may begin over the future of
In Mr Gorman’s opinion, the trust change plan was a “prudent move” to “persistently solidify Lachlan Murdoch’s executive role” within the empire “regardless of the impact such control would have on the companies and family beneficiaries”. “It was an example set up by the government,” he said. Trustworthy, the Times said.
Rupert Murdoch’s lawyer Adam Streisand said he was disappointed with the verdict and planned to appeal, the Times reported. The commissioner’s ruling must be approved by a district judge, and the decision can be challenged in court.
The trust was established in Nevada, a state known for its strict confidentiality rules.
A spokesperson for Rupert Murdoch, 93, could not be reached for comment. Lachlan Murdoch did not respond to an email seeking comment.
Lachlan’s siblings James, Elizabeth and Prudence released a joint statement expressing their hope that the family will focus on repairing their relationship.
“We welcome Secretary Gorman’s decision and hope that we can move beyond this litigation and focus on strengthening and rebuilding relationships for our entire family,” the brothers said.
(Reporting by Dawn Chmielewski in Los Angeles; Katherine Jackson and Eric Beach; Editing by Rami Ayyub and Deepa Babington)
