evince
Truthmatters
http://money.cnn.com/2016/08/08/med...+rss/money_topstories+(CNNMoney:+Top+Stories)
Roger Ailes' alleged use of Fox News' funds could pose a liability for 21st Century Fox.
On Sunday, New York Magazine's Gabriel Sherman reported that Ailes used his company's budget "to hire consultants, political operatives, and private detectives" to go after his enemies, including journalists who wrote critical articles about him.
Now, legal experts tell CNNMoney that, if true, such actions could make 21st Century Fox liable to its shareholders.
"As a general rule it is an actionable breach of the fiduciary duty of loyalty for a corporate executive to use company funds for personal purposes," Lynn Stout, the Distinguished Professor of Corporate & Business Law at Cornell University, said.
Citing a senior Fox source, Sherman reported that Ailes had hired consultants "to do work that was more about advancing his own agenda than Fox's," including one who "ran negative PR campaigns against Ailes's personal and political enemies out of Fox News headquarters."
Related: Fox News voice not changing despite Ailes' departure, but questions linger
Targets of these campaigns included journalists at Gawker as well as at the local newspaper in Putnam County, New York, that Ailes and his wife own, and even Sherman himself, according to the report.
Roger Ailes' alleged use of Fox News' funds could pose a liability for 21st Century Fox.
On Sunday, New York Magazine's Gabriel Sherman reported that Ailes used his company's budget "to hire consultants, political operatives, and private detectives" to go after his enemies, including journalists who wrote critical articles about him.
Now, legal experts tell CNNMoney that, if true, such actions could make 21st Century Fox liable to its shareholders.
"As a general rule it is an actionable breach of the fiduciary duty of loyalty for a corporate executive to use company funds for personal purposes," Lynn Stout, the Distinguished Professor of Corporate & Business Law at Cornell University, said.
Citing a senior Fox source, Sherman reported that Ailes had hired consultants "to do work that was more about advancing his own agenda than Fox's," including one who "ran negative PR campaigns against Ailes's personal and political enemies out of Fox News headquarters."
Related: Fox News voice not changing despite Ailes' departure, but questions linger
Targets of these campaigns included journalists at Gawker as well as at the local newspaper in Putnam County, New York, that Ailes and his wife own, and even Sherman himself, according to the report.