Rupert Murdoch has failed in his attempt to modify his family trust in order to centralize control of his media empire with his son, Lachlan, according to a report by the New York Times that referenced a sealed court document.
Nevada commissioner Edmund Gorman determined in a ruling issued on Saturday that both Rupert Murdoch and his eldest son, Lachlan, who leads Fox News parent company Fox Corp and News Corp, acted in “bad faith” in their attempts to alter the irrevocable trust, as per the Times.
The court records reveal that Mr. Gorman issued a recommendation or order on Saturday, although the document remains unavailable to the public.
The trust is designed to distribute control of the company equally among Rupert Murdoch’s four oldest children—Lachlan, James, Elisabeth, and Prudence—upon his death.
In one potential scenario, three of the heirs could theoretically outvote the fourth, creating a conflict over the future direction of the influential media outlets, even as Lachlan Murdoch currently manages Fox and serves as the sole chair of News Corp.
Lachlan Murdoch exits the Washoe County Courthouse on September 18 in Reno, Nevada.
Mr. Gorman described the proposal to modify the trust as a “carefully crafted charade” intended to “permanently cement Lachlan Murdoch’s executive roles” within the empire “regardless of the implications such control would have for the companies or the beneficiaries” of the family trust, the Times reported.
Adam Streisand, a lawyer representing Rupert Murdoch, expressed disappointment with the ruling and stated intentions to appeal, according to the Times.
The commissioner’s ruling must be approved by a district judge, whose decision could also be contested in court.
The trust was established in Nevada, noted for its rigorous confidentiality regulations.
Lachlan’s siblings, James, Elisabeth, and Prudence, released a joint statement expressing their hope that the family would prioritize repairing relationships.
“We welcome Commissioner Gorman’s decision and hope that we can move beyond this litigation to concentrate on strengthening and rebuilding relationships among all family members,” said the siblings.
