Rupert Murdoch Fails to Alter Family Trust in Bid

A probate court has ruled against Rupert Murdoch in a petition to change the terms of his succession plan to ensure that his eldest son Lachlan remains in charge of his conservative media empire after his death. The ruling was reported by The New York Times, citing a sealed document.

A Nevada commissioner found that Murdoch acted in “bad faith” in attempting to change the terms of the irrevocable family trust, through which he controls News Corp. and Fox. The trust currently gives equal voting shares to Murdoch’s four eldest children. Lachlan, the current chair of News Corp., could potentially be stripped of his title by his siblings, who are more politically moderate and have opposed revisions to the trust.

Edmund J. Gorman Jr. concluded that Murdoch’s legal maneuver was a “carefully crafted charade” to solidify Lachlan’s control and ensure the continued conservative nature of Fox’s coverage. The ruling stated that this arrangement is in the best interest of all beneficiaries of the media empire.

Lawyers for Murdoch and his other children did not immediately respond to requests for comment. An appeal is planned, according to Adam Streisand, representing Murdoch.

The case will now move to a district court for further decisions. The possibility of more litigation remains open.

The court proceedings in Nevada, which were kept under seal, examined proposed changes to the trust. Lachlan initiated the plans to change the trust amid concerns that his brother James, who is no longer with the company, was plotting to remove him after their father’s passing.

To establish Lachlan as his successor, Murdoch needed to demonstrate that the changes were made in good faith for the benefit of all trust members.

James, once considered the heir to the media empire, parted ways with the company due to disagreements over editorial content. This could include Fox’s coverage of the election, which has led to legal issues and lawsuits against the board.