Fox Corp. Sued by Pension Fund Over Murdoch Liability Shield (1)

A pension fund sued Fox Corp. in Delaware, challenging a recently adopted charter clause shielding media moguls Rupert and Lachlan Murdoch from liability for “reckless or grossly negligent conduct” that breaches their fiduciary duties toward investors.

The lawsuit targets a Nov. 3 amendment to Fox’s charter that eliminates fiduciary breach liability for its executives to the maximum extent permitted by a new statute enacted in August. Delaware law previously permitted such “exculpatory” clauses only for board members, not upper management.

The corporate charter changes were approved only by Fox’s class B stockholders—mostly members of the Murdoch family—without a vote of ...