Fox Reveals Cost of Sexual Harassment Allegations: $45 Million -
By BROOKS BARNESMAY 10, 2017
LOS ANGELES — Twenty-First Century Fox disclosed on Monday
that it had incurred costs of $10 million “related to settlements of pending and potential litigations” during its fiscal third quarter in the aftermath of sexual harassment allegations at Fox News.
That revelation was made in a regulatory filing to the Securities and Exchange Commission in which 21st Century Fox said it “has also received regulatory and investigative inquiries relating to these matters and stockholder demands to inspect the books and records of the company which could lead to future litigation.” The company said
that in the nine months leading up to March 31, it had incurred $45 million in costs tied to litigation related to harassment allegations.
An 8 percent increase in subscriber fees — led by those for Fox News, Fox Sports 1, a roster of regional sports channels
and the FX networks — contributed to a 5 percent increase in operating income, to $1.45 billion, at the company’s vast cable division.
For the quarter that ended on March 31, 21st Century Fox reported net income of $799 million, or 43
cents a share, down from $841 million, or 44 cents a share, in the same period a year earlier.
noted that the Fox News “prime time lineup has significantly changed, which could have a negative impact on our ratings.”
Since Mr. O’Reilly’s exit, Fox News has retained the top spot in cable news, but its competitors are closing in.
