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Los Angeles Times
Los Angeles Times
Business
Stephen Battaglio

British regulators deciding on Murdochs' Sky bid will hear Fox News harassment claims

LOS ANGELES _ The sexual harassment scandal that has enveloped Fox News is now posing a threat to the parent company 21st Century Fox's deal to take full ownership of the European satellite TV service Sky.

Douglas Wigdor, the attorney whose firm represents 20 plaintiffs in sexual harassment and racial discrimination cases against Fox News, has been invited to appear before the Office of Communications, also known as Ofcom, the British regulatory body reviewing whether 21st Century Fox can be a fit owner of Sky.

"I am pleased that Ofcom has invited me to appear in London next week on behalf of our 20 clients and look forward to sharing the information that I have come to learn about 21st Century Fox through the dedicated men and women that I am privileged to represent," Wigdor said Friday morning in a statement.

Wigdor's testimony will follow an appearance by Wendy Walsh, the radio psychologist who went public with her harassment complaint against Fox News. Walsh's attorney Lisa Bloom confirmed that her client has been invited to speak before Ofcom on Monday.

Walsh did not file a formal complaint that Fox News anchor Bill O'Reilly went back on a stated commitment to get her a position as a paid contributor at Fox News after she rejected his advances at a 2013 dinner meeting at the Hotel Bel-Air in Los Angeles. The revelation of Walsh's claim _ along with the disclosure that $13 million had been paid to settle other harassment claims made by other women against O'Reilly, led to the popular host's April 18 firing from the network.

Wigdor's clients include Juliet Huddy, a former Fox News host who received a settlement after alleging that she was sexually harassed by O'Reilly. His firm also represents 13 current and former black employees of Fox News who claim they have faced racial discrimination throughout their tenure at the company. Fox News correspondent Kelly Wright is among the group.

Yet another case emerged Thursday when Wigdor filed a gender discrimination lawsuit against Fox News on behalf of radio correspondent Jessica Colloher. Colloher alleges that she was terminated the day after she called Paul Weiss, the law firm investigating harassment claims made against Fox News. Fox News denies the accusation, saying Colloher's position was eliminated in budget cuts.

The New York-based Murdoch family-controlled media company has long had ambitions to control Sky, Britain's satellite pay-television juggernaut that boasts exclusive rights to soccer and other sporting events. Sky also sells broadband internet service, an online streaming plan and a Sky-branded phone service. Fox currently holds a 39.1 percent interest in Sky, but Murdoch and his sons are determined to consolidate Fox's ownership.

Fox, formerly known as News Corp., made its first attempt to buy Sky in 2010 for $12 billion but pulled back following revelations that reporters and operatives for its London tabloids had hacked into cellphone messages left for members of the royal family, celebrities such as Hugh Grant and even crime victims.

The discussions before Ofcom are occurring amid reports that federal investigators have widened their probe into how Fox News handled the financial reporting of payments made to settle sexual harassment claims.

The investigation is being conducted by the office of the U.S. attorney for the Southern District and the U.S. Postal Inspection Service.

A number of former Fox News employees are said to have been subpoenaed in the investigation. According to the Wall Street Journal, they include the network's former communications chief Brian Lewis, who is said to have received immunity from prosecution for his grand jury testimony.

Former chief financial officer Mark Kranz has also been subpoenaed, according to people familiar with the matter. Kranz was dismissed from Fox News in August shortly after the ouster of founding Chief Executive Roger Ailes.

The problems at Fox News began after Ailes was sued by former anchor Gretchen Carlson for sexual discrimination in retaliation in July. Fox News settled the case for $20 million and Ailes was forced out while denying the allegations. Since that time, Fox News has faced numerous allegations of sexual harassment against Ailes and O'Reilly. Bill Shine, a longtime deputy for Ailes who was promoted to co-president of Fox News in August, was also forced to leave due to the perception that he did little to deter inappropriate behavior within the company.

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