The fallout continues over allegations of sexual harassment at Fox News. “Federal prosecutors are investigating whether 21st Century Fox Inc. should have disclosed to investors that it made secret settlement payments to female on-air hosts who alleged sexual harassment,” Bloomberg reports.
“The investigation came to light in New York state court on Wednesday when a lawyer, Judd Burstein, said a client he didn’t identify had received a grand-jury subpoena from federal prosecutors in New York,” the story reports. “Burstein, who was in court on a case against Fox, said he was later told by prosecutors in Manhattan that the securities unit is investigating ‘sexual harassment issues’ at the company.”
Bloomberg adds: “The investigation centers on whether Fox’s settlement payments to women alleging harassment were so material that they should have been disclosed to investors, according to a person familiar with the matter who declined to be named because details of the probe aren’t public.”