New bombshell in the Roger Ailes-Fox News scandal
Word is the feds are looking into allegations against Fox News co-founder
February 16, 2017
It’s been months since Roger Ailes headed Fox News Channel, but the network just can’t seem to disentangle itself from its co-founder’s sexual harassment scandal.
The channel and parent 21st Century Fox are reportedly under investigation by the feds over whether the company properly informed shareholders that it had quietly settled cases over the years against Ailes, who was accused of harassment by multiple women over the years.
At issue: Whether Fox News paid women off from a fund labeled as something else.
Details slowly emerging in Ailes aftermath
The investigation came to light at a hearing Wednesday related to a lawsuit filed against several FNC bosses by former Fox host Andrea Tantaros. One of her lawyers said another one of his clients received a subpoena from federal prosecutors related to a Fox News case.
“Once I saw it, I knew what was happening,” the lawyer said. “They were investigating whether Fox News violated securities laws by not reporting settlements to the Securities and Exchange Commission.”
Fox News, which won a motion to send Tantaros’ case to arbitration, issued a statement.
“The court granted Fox News’ motion to send Andrea Tantaros’ case to arbitration, where it always belonged, and rejected her counsel Judd Burstein’s histrionics. Apparently one of Mr. Burstein’s other clients has received a subpoena. Neither Fox News nor 21CF has received a subpoena, but we have been in communication with the U.S. attorney’s office for months — we have and will continue to cooperate on all inquiries with any interested authorities,” it said.
The case in question relates to settlements reached before Gretchen Carlson filed the lawsuit last summer that ultimately led Ailes to resign. She received a reported $20 million settlement after other women at the network, including Megyn Kelly, corroborated claims that Ailes behaved inappropriately.
Fox launched an internal investigation into the claims, and presumably reports of payoffs to other women in prior years from hush funds under Ailes’ control.
The Manhattan U.S. attorney reviewed the report from that investigation, which apparently made mention of an alleged fund, sparking the investigation.
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