News Corp (NWS, NWSA) and Fox (FOX, FOXA) Chair Emeritus Rupert Murdoch's attempt to change his family trust to consolidate control of his media empire in the hands of his eldest son Lachlan Murdoch was rejected by a Nevada probate commissioner, multiple media outlets reported Monday.
The commissioner, Edmund Gorman Jr., said in a decision filed Saturday that Rupert and Lachlan, who heads Fox News and News Corp, had acted in "bad faith" in their effort to amend the family trust, which divides control of the empire equally among Murdoch's four oldest children after his death, The New York Times reported, citing a sealed court document.
"We welcome Commissioner Gorman's decision and hope that we can move beyond this litigation to focus on strengthening and rebuilding relationships among all family members," The New York Times quoted Murdoch's children James, Elisabeth, and Prudence as saying in a statement.
Rupert Murdoch can ask a probate judge to review Gorman's ruling and if a request for review is not submitted, a probate judge will uphold the commissioner's decision, The Wall Street Journal reported.
"We are disappointed in the Commissioner's ruling and, of course, plan to appeal," the WSJ quoted Murdoch's attorney Adam Streisand as saying.
If the ruling is enacted, the status quo will remain in effect and Murdoch's four children would share control of the family holdings after his death, the WSJ said. Two other children are beneficiaries of the trust but don't have voting power, the report added.
The court document is not publicly available, Reuters reported.
Neither News Corp nor Fox immediately responded to MT Newswires' requests for comment.
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